Home / Features / The salary you need to earn to afford Honda’s new entry-level SUV in South Africa

The salary you need to earn to afford Honda’s new entry-level SUV in South Africa

Anyone who wants to own a Honda SUV in South Africa will need to earn at least R42,000 per month if they want to purchase one on finance, according to a calculation by TopAuto.

The Elevate is the Japanese automaker’s new entry-level SUV, replacing the WR-V at a starting price of R369,900, or R429,900 if you want the range-topping unit.

For this sum, you get a 1.5-litre, naturally-aspirated petrol engine with 89kW and 145Nm that is paired to one of two gearboxes.

On the base Comfort, a five-speed manual gearbox channels drive to the front wheels which returns an average fuel consumption of 6.5l/100km.

A CVT option is available on the top-end Elegance, helping to bring down its fuel usage to 5.9l/100km.

Standard fittings on the crossover include 16-inch steel wheels, LED headlights, daytime running lights, rear parking sensors, a reverse camera, fabric seats, automatic air conditioning, keyless entry and start, a multifunction steering wheel, four speakers, two airbags, and an 8.0-inch media display with Apple CarPlay and Android Auto.

Upgrading to the Elegance then adds LED fog lamps, automatic headlights, 17-inch dual-tone alloy rims, two additional speakers, a wireless phone charger, eco-friendly leather upholstery, four more airbags, an electric sunroof, and a 7.0-inch digital instrument cluster.

What you need to earn

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

  • Car price – R369,900/R429,900  
  • Payment term – 60 terms (5 years)
  • Interest – 11.75%
  • Deposit – 0%
  • Balloon – No balloon payment
  • Extras – No optional extras

According to this, prospective owners will need to pay a minimum of R8,277 per month to afford the Comfort, and up to R9,604 per month for the Elegance.

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

In other words, motorists will need to earn between R41,385 and R48,020 per month in order to pick up a Honda SUV in South Africa.

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

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