If you want to buy a new Alfa Romeo Giulia Quadrifoglio, then you should be earning at least R150,000 per month.
This is according to advice from financial experts, based on an “affordable” car finance plan this income amount can sustain.
The new Alfa Romeo Giulia Quadrifoglio was unveiled in South Africa this month, with the performance of the vehicle and its interior receiving updates.
Alfa Romeo has packed a 2.9-litre, V6, bi-turbo petrol engine that produces 375kW into the Quadrifoglio, which is connected to a “specially calibrated” eight-speed automatic transmission.
This allows the sporty sedan to go from 0-to-100km/h in 3.9 seconds.
An electronic chassis control unit, a semi-virtual steering axis, and an active suspension are also included in the Giulia Quadrifoglio.
The price for all this power? R1,599,900.
Affording the car
To calculate how much a prospective buyer should earn to “afford” the Alfa Romeo Giulia Quadrifoglio, we must first calculate how much it costs to buy the car using a finance plan.
We can do this by placing the retail price of R1,599,900 into the formula below.
- Car Price – R1,599,900
- 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 R30,000. The total interest paid over the duration of the agreement is R353,700.
Financial experts then recommend that you do not spend more than 20% of your gross monthly salary (how much you earn before deductions) on vehicle payments.
Using this guideline produces a required income of R150,000 per month.
It must be noted that this is a guideline only, and a car buyer should always assess their entire financial situation before purchasing a vehicle.
Additionally, the amounts above are focused on car finance payments only.
They do not include monthly insurance premiums and fuel costs.