The salary you need to earn to afford the new R1-million Honda CR-V in South Africa

South Africans who want to pick up the new Honda CR-V will need to earn at least R106,000 per month if they plan on using a bank loan, according to a calculation by TopAuto.

The next-gen SUV is the brand’s flagship vehicle in South Africa and is available in two specifications – Executive and Exclusive – which cost R959,900 and R1,039,900, respectively.

For this price, you’ll get a 1.5-litre, turbocharged petrol engine with 140kW and 240Nm, which connects to the front wheels using a CVT transmission for an average fuel consumption of 7.4l/100km.

Unlike the previous models, the new CR-V is a seven-seater and has a boot of 150 litres, which expands to 478 litres with the rear bench folded.

In terms of appearance, the Honda comes standard with 19-inch alloy wheels, a gloss-black mesh grille, front and rear sports bumpers, and a stainless steel exhaust.

The cabin receives seats upholstered in leather, a wireless charger, a 7.0-inch digital driver’s display, a 10.2-inch infotainment monitor with Apple CarPlay and Android Auto, a leather multifunction steering wheel with paddle shifters, and an Active Noise Control system.

Safety items on the SUV then comprise, front and rear parking sensors, eight airbags, an HD surround camera, and Honda’s Sensing package which includes a collision-mitigation braking system, forward-collision warning, adaptive cruise control, lane-keeping assist, road-departure mitigation, lane-departure warning, and a driver-attention monitor.

Each purchase comes with a 5-year/200,000km warranty and a 5-year/90,000km service plan.

What you need to earn

We can use the following formula to work out the monthly payments on the new Honda:

• Car price – R959,900/R1,039,900   
• 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 a minimum of R21,327 per month to afford the CR-V, and up to R23,096 per month for the flagship Exclusive.

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

This means you’ll need to earn between R106,635 and R115,480 per month if you want to purchase the new Honda CR-V on finance in South Africa.

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