The salary you need to afford the cheapest electric car in South Africa

South African motorists who would like to own a battery-electric car will need to earn a salary of at least R77,000 per month in order to purchase one on finance, according to a calculation by TopAuto.

The cheapest electric vehicle (EV) in the country is the new GWM Ora, which can be had in four specifications with prices ranging from R686,950 to R835,950, meaning its starting tag is R96,550 less than the previous entry-level EV – the Mini Cooper SE – which now goes for R783,500.

The hatchback is available with one of two power sources, either a 48kWh or 63kWh battery, which connect to a front-mounted electric motor with 126kW and 250Nm.

Both systems have the same 0-100km/h acceleration figure of 8.5 seconds, but the real advantage of the larger battery is its extended range, as it can do up to 420km instead of the former’s 310km.

The trade-off is that the smaller power cell takes about 40 minutes for a 10-80% charge with an 80kW DC outlet, while the other takes 50 minutes to do the same.

Depending on the trim level you go for, equipment will include things like a Smart Cockpit with two 10.25-inch displays for the driver and infotainment systems, artificial leather upholstery, a 360-degree camera, climate control, adaptive cruise control, keyless entry and start, automatic LED lights with high-beam assist, 18-inch alloy wheels, and a panoramic sunroof.

What you need to earn

We can use the following formula to work out the monthly payments for the country’s cheapest electric car:

• Car price – R686,950/R835,950
• Payment term – 60 terms (5 years)
• Interest – 11.75%
• Deposit – 0%
• Balloon – No balloon payment
• Extras – No optional extras

According to this, you will need to pay at least R15,290 per month in order to pick up the most affordable GWM Ora, and up to R18,586 per month if you want the range-topping spec.

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

In other words, you will need to earn anywhere from R76,450 per month to R92,930 per month to afford an EV in South Africa.

Note that this figure does not account for insurance, electricity, and maintenance, which all need to be factored into your budget.