If you are in the market for a new Mini Cooper S and want to buy it using a finance plan, you must earn at least R55,000 per month.
This is according to advice from financial experts.
The new Cooper S is a sporty and stylish hatchback, with a starting price of R564,058. However, a mandatory “Classic” equipment package – with a price of R28,400 – must then be optioned on the Cooper S when buying it.
This gives you a price tag of R592,458.
For your money you receive a three-door hatchback powered by a 2.0-litre, turbo-petrol engine paired with a seven-speed, dual-clutch automatic transmission.
The set-up generates 141kW and 280Nm that is directed to the front wheels, which allows the hatchback to accelerate to 100km/h in 6.7 seconds – and reach a top speed of 235km/h.
On the outside, the Mini Cooper S gains a new grille, larger hexagonal air intakes in the front, LED headlights, a body-coloured bumper strip, and vertical air inlets in place of front fog lights.
How much you need to earn
To work out how much you need to earn to “afford” to the new Mini Coopers S, we can look to financial experts for guidance.
These experts recommend that you do not spend more than 20% of your gross monthly salary on vehicle payments.
We can calculate this threshold using the formula below, and the Cooper S price of R592,458.
- Car Price – R592,458
- Payment Term – 60 terms (5 years)
- Interest – 9%
- Deposit – 10%
- Balloon – No balloon payment
- Extras – No optional extras
The result is a monthly car payment of R11,100.
When we apply the “20% of your gross monthly salary” rule to the car finance payment, we get a salary requirement of R55,500 per month.
It must be noted that this salary requirement does not look at an individual’s total household expenses, nor take insurance premiums and fuel costs into account.