To put a new Hyundai i20 in your garage, you will need to pay around R6,000 per month in vehicle finance payments.
The final figure you will pay depends on which i20 model you select, with Hyundai offering eight variations of the small car.
Slapping a two-tone roof onto the car will add another R5,000 to the total on certain models.
At the top-end of the range, the car is powered by a 1.0-litre turbo engine – which can be paired with either a 6-speed manual or 7-speed dual-clutch automatic transmission.
This unit delivers delivers 90kW and 172Nm, and achieves a 6.9l/100km fuel consumption.
To work out how much a prospective i20 owner will have to pay each month through a vehicle finance plan, we used a “mid-range” price of R330,000.
This price was then placed into the calculation below:
- Car Price – R330,000
- Payment Term – 60 terms (5 years)
- Interest – 9%
- Deposit – 10%
- Balloon – No balloon payment
- Extras – No optional extras
The result is a monthly vehicle finance payment of R6,260 per month.
You will then pay a total of R73,210 in interest over the duration of the payment plan.
Financial experts recommend that car owners do not spend more than 20% of their gross monthly salary on vehicle finance payments.
This means that if you would like to buy a Hyundai i20 at R6,260 per month, you should be earning a monthly salary of R31,300 before deductions.
It is important to note that car insurance payments and fuel expenses must also be taken into account for your monthly car budget – along with service and repair costs which may come up once the car is out of its warranty and service period.
This will result in a total monthly “car budget” which is higher than the repayment alone.