How much the ‘average Joe’ South African is paying for a new car right now
New data published by financial services company Wesbank shows how much the average South African is currently willing, or able to pay for a new vehicle.
According to Ghana Msibi, WesBank’s executive head for sales and marketing, the new vehicle industry showed a minor upswing in March with a total of 49,233 new vehicles sold – up 1.1% year on year.
This was likely due to pre-emptive buying Msibi said, as motorists attempted to beat a number of tax increases which were introduced in April.
“Following the budget speech indicating an increase in VAT and ad valorem tax from 1 April, it is our view that consumers opted to avoid the increases this would have on vehicle purchase prices,” he said.
“These, combined with the renewed consumer and business confidence, and a reduction in the repo rate, contributed to the growth in the passenger car segment.”
Despite this uptick, motorists are actually financing their new vehicle purchases for slightly less than a year ago, at R298,225 – down from R298,758 in March 2018.
Vehicle sales by channel showed dealerships accounted for 42,038 purchases, with rental at 2,608, government at 900, and single sales at 1,308 vehicles.
Wesbank said application volumes for new vehicles amounted to 40,761 in March.
The three most popular passenger vehicles for March 2018 were the Volkswagen Polo Vivo (from R179,900), Volkswagen Polo (from R209,500), and Toyota Fortuner (R454,500).
So what does the ‘average’ car looks like based on this price point? BusinessTech looked at three options across the major segments in the industry.
Hatch
Renault Megane hatch 84kW Dynamique – R295,900
Hyundai i20 1.4 Sport – R292,900
Fiat Tipo hatch 1.4 Lounge – R294,900
Sedan
Hyundai Elantra 1.6 Executive – R299,900
Toyota Corolla 1.3 Prestige – R291,200
Mazda 3 sedan 1.6 Dynamic auto – R299,600
Cross-over/SUV
Mahindra XUV 500 – R282,500
Mahindra Scorpio – R291,995
Maxda Cx-3 – R290,800
Bakkie
Ford Ranger Super Cab – R296,800
GWM Steed 6 Double-cab – R299,900
Fiat Fullback single-cab – R280,900
Read: 8 diesel cars you can buy in South Africa for less than R300,000
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