What you need to earn to afford the new Proton Saga – The 2nd-cheapest sedan in South Africa

South Africans interested in purchasing the new Proton Saga will need to earn at least R20,000 per month to afford the vehicle, according to a calculation by TopAuto.

The Saga is the first of two sedans that the Malaysian brand is bringing to the country along with the new Persona.

The Saga is the second-cheapest vehicle in its segment with prices starting at R199,900 for the base model which then increases to R239,900 for the Premium specification.

Regardless of the trim selected, the Proton is powered by a 1.3-litre petrol engine with 70kW and 120Nm. It has a choice of a five-speed manual or four-speed automatic gearbox and is front-wheel drive – the combination of all these factors results in a fuel consumption of 7.0l/100km on an average cycle.

On the equipment front, the sedan comes with a 14-inch steel rims, a multi-information driver display, electric windows, central locking, ABS, two airbags, fabric upholstery, manual air conditioning, an Eco driving mode, rear parking sensors, and a Bluetooth sound system with two speakers.

Upgrading to the automatic version throws in 14-inch alloy wheels, and hill assist, while the Premium trim adds LED daytime running lights, a reverse camera, front parking sensors, and a 7-inch infotainment screen with four speakers in total.

What you need to earn

We can use the following formula to calculate the monthly payments on the new Proton.

• Car price – R199,900/R239,900
• Payment term – 60 terms (5 years)
• Interest – 10.75%
• Deposit – 10%
• Balloon – No balloon payment
• Extras – No optional extras

According to this, the sedan will require a minimum payment of R3,984 per month for the entry-level manual, or R4,762 per month for the Premium.

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

This means prospective buyers will need to earn between R19,920 and R23,810 per month to be able to “afford” the vehicle.

This figure does not include insurance, fuel, and maintenance, however, which needs to be factored into your budget.