You will need to bring home serious bacon each month if you plan to buy a new Land Rover Defender V8 using a vehicle finance plan. And by serious bacon, we mean R215,000 per month.
This figure is based on advice from financial experts, who recommend that you do not spend more than 20% of your gross monthly salary on vehicle finance payments.
The new Land Rover Defender V8 packs a lot of value for its price, and its engine alone may convince you it is worth spending your money on.
Under the hood sits a 5.0-litre, V8 supercharged engine that generates 386kW and 625Nm.
This is paired to an 8-speed automatic transmission which provides power to all four wheels – and delivers a 0-100km/h time of 5.2 seconds.
Additional features include a unique suspension system and transmission tunneling, bespoke spring and damper rates, a new electronic active rear differential, and a new terrain dynamics programme.
South African pricing for the new Land Rover Defender V8 is as follows:
- Land Rover Defender 90 V8 – R2,270,310
- Land Rover Defender 110 V8 – R2,343,910
- Land Rover Defender 90 V8 Carpathian Edition – R2,365,710
- Land Rover Defender 110 V8 Carpathian Edition – R2,439,310
Included in the price is a 5-year/100,000km Land Rover Care Plan.
To work out how much you need to earn to “afford” a Land Rover Defender V8, we must first calculate how much the SUV costs a buyer per month when using a vehicle finance plan.
The purchase price is then put into the formula below.
- Car Price – R2,300,000
- Payment Term – 60 terms (5 years)
- Interest – 9%
- Deposit – 10%
- Balloon – No balloon payment
- Extras – No optional extras
Finance payments for this amount come to R43,000 per month, while the total amount of interest you will pay over the duration of the agreement is R508,000.
We then need to calculate the required monthly salary to meet the standard of not spending more than 20% of your gross monthly pay on vehicle payments, as set out by financial experts.
The result is a monthly salary of R215,000.
Buyers will also have to pay for insurance and fuel costs on top of this, which add several thousand rand per month to your expense list.