Motorists who wish to purchase a new car in South Africa will need to earn a minimum of R20,000 per month, according to a calculation by TopAuto.
The cheapest new vehicle in the country is the Suzuki S-Presso, which saw an update at the end of 2022 and a price increase in 2023, now retailing for R169,900 – R13,000 more than in June last year.
The “micro-SUV” has a 1.0-litre, naturally-aspirated petrol engine with 49kW and 89Nm, which links to the front wheels via one of two gearboxes. The five-speed manual averages 4.6l/100km on a combined fuel cycle, while the four-speed auto manages a slightly better 4.4l/100km.
Standard equipment on the S-Presso includes 14-inch steel wheels, electric front windows, central locking, electronically-adjustable side mirrors, a stop-start function, manual air conditioning, rear parking sensors, and a multifunction steering wheel.
It also comes with two speakers, though a radio system must be installed at an additional cost.
Safety equipment, meanwhile, comprises ABS, electronic stability control, two front airbags, and two ISOFIX child seat mounts.
What you need to earn
We can use the following formula to calculate the monthly payments for the Suzuki S-Presso.
- Car price – R169,900
- Payment term – 60 terms (5 years)
- Interest – 11.75%
- Deposit – 0%
- Balloon – No balloon payment
- Extras – No optional extras
From this, we can determine that the cheapest new car in South Africa will require a minimum payment of R3,853 per month if bought on a finance plan.
According to WesBank, a person needs to have a post-tax salary of at least R7,500 per month to qualify for vehicle finance, but recommends that individuals do not spend more than 20% of their income on car payments.
In fact, most banks will not agree to a finance plan that goes higher than 30% of a person’s take-home salary, according to AutoTrader.
This means local motorists will realistically need to earn at least R19,265 per month in order to purchase a new car, significantly far above the average take-home pay of R15,321 per month in March.
Note that this figure does not account for fuel, insurance, or maintenance, which must all be factored into the cost of owning the vehicle.
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