How much you need to earn to afford a BMW iX – TopAuto
logo
Latest News
Follow
Friday / 27 May 2022
HomeFeaturesHow much you need to earn to afford a BMW iX

How much you need to earn to afford a BMW iX

If you would like to buy a new BMW iX using a finance plan, you should be earning at least R154,600 per month.

This is according to advice from financial experts.

The electric BMW iX is now available in South Africa from R1,650,000 – with the first batch of units already sold out.

For this price, you receive an SUV with a 76.7kWh battery powering an electric motor on each axle. This provides 240kW and 630Nm, with drive going to all the wheels.

0-100km/h is done in 6.1 seconds and you can reach a top speed of 200km/h in the new BMW, too.

Inside, the company also packed a wide range of the latest features.

This includes a curved 12.3-inch instrument cluster and 14.9-inch infotainment display, Sensatec artificial leather finishes, and advanced driving-assist features.

Monthly payments

To work out how much you should earn to “afford” the BMW iX, we first need to calculate how much monthly finance instalments on the vehicle are.

To do this, we can place its price tag of R1,650,000 into the formula below.

  • Car Price – R1,650,000
  • Payment Term – 60 terms (5 years)
  • Interest – 9%
  • Deposit – 10%
  • Balloon – No balloon payment
  • Extras – No optional extras

The result is a monthly finance payment of R30,920. The total amount of interest you will pay on this finance agreement is then R364,800.

Financial experts recommend that you do not spend more than 20% of your gross monthly salary on vehicle payments.

Applying this rule to the vehicle finance payment of R30,920 results in a required monthly salary of R154,600.

It must be noted that this calculation does not look at a buyer’s total monthly household expenses.

It also does not take insurance premiums and charging costs into account. Therefore, it is only a rough guide and does not constitute financial advice.

Tags

Share

Show comments