How much you need to earn to afford a Honda Fit – TopAuto
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Monday / 20 September 2021
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How much you need to earn to afford a Honda Fit

Honda’s new Fit hatchback is now available in South Africa, and is “affordable” to anyone who earns R30,000 per month.

This affordability amount is based on advice from financial experts, who recommend not exceeding a fixed ratio between monthly salary and vehicle finance payments.

The Honda Fit is replacing the longstanding Jazz in the line-up, and is available in three trim lines – Comfort, Elegance, and Executive.

All models are powered by a 1.5-litre, i-VTEC petrol engine paired with a CVT transmission, which provides 89kW and 145Nm to the front wheels.

A flagship hybrid model will also be launched in October, said Honda.

South African pricing for the new Honda Fit is as follows:

  • Honda Fit 1.5 Comfort CVT – R319,900
  • Honda Fit 1.5 Elegance CVT – R359,900
  • Honda Fit 1.5 Executive CVT – R389,900

Each model is sold with a 5-year/200,00km warranty, a 4-year/60,000km service plan, and three years of AA roadside assistance.

Monthly payments

The R30,000 monthly salary required to “afford” a new Honda Fit is based on advice from financial experts.

They recommend that a car buyer using a vehicle finance plan does not spend more than 20% of their gross monthly salary on instalments.

To calculate how much the monthly instalments on the hatcback are, we used the R319,900 Honda Fit 1.5 Comfort CVT as a starting point.

Its retail price was then placed into the formula below.

  • Car Price – R319,900
  • 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 R6,070.

Using the R6,070 instalment amount, we can work out that the required monthly salary to “afford” the Honda Fit is just over R30,000 per month.

It must be noted that car owners will also have to pay for insurance premiums and petrol each month, which will add to their total expenses.

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