The salary you need to afford Honda’s new sedan in South Africa

Motorists will need to earn at least R28,000 per month in order to afford Honda’s new sedan on a finance plan, according to a calculation by TopAuto.

Honda recently launched the facelifted Amaze, which is one of the last sedans in South Africa that retails for less than R300,000.

The Amaze is available in three specifications, with prices ranging from R254,900 for the Trend, up to R294,900 for the range-topping Comfort.

All three versions of the Japanese car are powered by a 1.2-litre, naturally aspirated petrol block that puts out 66kW and 110Nm.

The base Trend is sold with a five-speed manual gearbox, while the Comfort can be had with the manual or a continuously variable transmission (CVT).

Regardless of the chosen transmission, you can expect an average fuel consumption of 5.5l/100km.

Standard equipment includes keyless entry with walk-away auto locking, push-button start, climate control with rear vents, an 8-inch infotainment screen with Apple CarPlay and Android Auto, a 7-inch multi-info driver’s display, a multifunction steering wheel, and four speakers.

It also has a rearview camera, parking sensors, hill assist, and six airbags.

The Amaze units additionally feature a painted front grille, automatic headlights, front fog lamps, seatback pockets, “grain” inserts in the steering wheel, a wireless smartphone charger, and two extra speakers.

Each purchase includes a 5-year/200,000km warranty a 4-year/60,000km service plan, and 3-year/unlimited-kilometre roadside assistance.

What you need to earn

We can use the following formula to work out the monthly payments on the new Honda:

• Car price – R254,900/R294,900
• Payment term – 60 terms (5 years)
• Interest – 10.75%
• Deposit – 0%
• Balloon – No balloon payment
• Extras – No optional extras

According to this, you’ll need to pay at least R5,606 per month for the Trend, and up to R6,470 per month for the Comfort Auto.

Financial experts then recommend that you do not spend more than 20% of your gross monthly salary on vehicle payments.

This means you’ll need to earn anywhere from R28,030 per month to R32,350 per month to afford the new Amaze on a finance plan.

Note that this figure does not account for insurance, fuel, and maintenance, which must all be factored into your budget.