The cars you can afford with your salary in South Africa at the start of 2023

 ·15 Jan 2023

South Africa’s new-vehicle market continued its gradual recovery in 2022, with twelve consecutive months of year-on-year growth.

According to the National Association of Automobile Manufacturers of South Africa (Naamsa), new-vehicle sales across the passenger, light-commercial, medium-commercial, and heavy truck and bus segments totalled 528,963 units in 2022 – rising by 13.9% when compared to 2021.

In the last month of 2022, 41,783 new vehicles were sold – recording an increase of 5,839 vehicles or a gain of 16,2% compared to the total of new vehicle sales of 35,944 units during the corresponding month of December 2021, said Naamsa.

However, despite these positive numbers, new vehicle sales in 2022 are still 1.4% below the 536,612 units sold in 2019. Naamsa and the world’s No.1 automaker Toyota expect further near-term global supply chain disruptions to the new vehicle market in South Africa.

TopAuto reported that Toyota said its outlook for 2023 remains uncertain due to a persistent shortage of semiconductors and spikes in Covid cases in China.

Chip and other auto part shortages continue to plague the industry, and the rapid expansion of Covid cases throughout China will present additional difficulties, reported TopAuto.

Naamsa added that just as pandemic-induced disruptions seemed to subside in early 2022, the Russian invasion of Ukraine dealt a further blow to business and consumer confidence globally and in South Africa.

“The geopolitical conflict in Ukraine resulted in further supply chain disruptions and have inflated prices and the availability of strategic products and inputs.”

In 2023, motorists will grapple with increasingly more expensive cars due to these national and international headwinds.

Industry experts still recommend that prospective buyers shouldn’t spend more than a quarter (25%) of their monthly income on vehicle-related costs. So, if you earn R20,000 per month, your total vehicle expenses should not exceed R5,000. And this should apply to the whole vehicle expense, including:

  • Vehicle instalments
  • Insurance premiums
  • Fuel costs

Below, BusinessTech looked at what you can afford to buy on your monthly salary in South Africa, using the above assumption that people will not spend more than 25% of their gross monthly income on vehicle financing.

The calculations were made using Wesbank’s repayments calculator and include the assumption of a 0% deposit for car financing. They also exclude any additional fees incurred during the loan’s inception into the calculation.

Finally, the cars are financed over five years (60 months) at an annual interest rate of 10.5%. This follows a recent interest rate hike by the South African Reserve Bank in November, taking the prime rate from 9.75% to 10.5%.

These calculations are purely for comparison purposes and are not meant as financial advice.

Price of car Monthly repayment Minimum gross monthly salary required
R150 000 R3 319 R13 276
R200 000 R4 394 R17 574
R300 000 R6 543 R26 172
R500 000 R10 842 R43 367
R750 000 R16 215 R64 861
R1 000 000 R21 589 R86 355
R2 000 000 R43 083 R172 331
R5 000 000 R107 564 R430 257

Below is an overview of the new cars you can currently buy in South Africa at each of these price points:

Earning between R14,000 – R17,000

Suzuki S-Presso 1.0 GL – R162,900

Mahindra KUV100 Nxt 1.2 G80 – R172,999

Renault Kwid 1.0 Life – R180,999

Earning R20,000

Suzuki Swift 1.2 GA – R194,900

Toyota Agya 1.0 – R196,100

Kia Picanto 1.0 Start – R209,995

Renault Kiger 1.0 Life – R219,999

Toyota Starlet 1.5 Xi – R226,200

Between R24,000 – R26,000

Toyota Urban Cruiser 1.5 Xi – R280,400

Volkswagen Polo Vivo hatch 1.6 Comfortline auto – R292,200

Nissan Magnite 1.0 Turbo Acenta – R296,500

Mahindra XUV300 1.5TD W6 – R297,999

Chery Tiggo 4 Pro 1.5 Urban – R299,900

Hyundai Venue 1.2 Motion – R299,900

Earning R35,000

Haval Jolion 1.5T Premium – R384,950

Volkswagen T-Cross 1.0TSI 70kW Comfortline – R387,600

Volkswagen Polo hatch 1.0TSI 85kW Life – R391,400

BAIC Beijing X55 1.5T Dynamic – R394,900

Mahindra Pik Up 2.2CRDe double cab S6 Karoo – R397,999

Suzuki Jimny 1.5 GLX AllGrip auto – R399,900

Between R42,000 – R45,000

Audi A1 Sportback 30TFSI S line – R489,800

Toyota Corolla hatch 1.8 Hybrid XS – R490,900

Kia Seltos 1.5CRDi EX+ – R493,995

Isuzu D-Max 1.9TD Extended cab LS manual – R494,000

Jeep Renegade 1.4T Longitude – R499,900

Between R62,000 – R65,000

Alfa Romeo Tonale 1.5T Hybrid Ti – R739,900

BMW X2 sDrive18i M Sport – R747,286

Volvo XC40 B3 Ultimate Dark – R751,400

Mercedes-Benz A200 sedan AMG Line – R759,358

Between R83,000 – R85,000

Ford Ranger 3.0 V6 double cab Wildtrak 4WD – R953,500

Ford Everest 2.0 BiTurbo 4×4 Sport – R965,400

Mercedes-Benz GLB220d 4Matic Progressive – R998,388

Volvo XC60 B5 AWD Plus Dark – R999,700

Volkswagen Tiguan R – R999,900

BMW X3 sDrive18d M Sport – R1,055,778

Upwards of R100,000

BMW M440i xDrive Gran Coupe – R1,413,966

Jaguar E-Pace P300e AWD R-Dynamic SE – R1,478,000

Land Rover Defender 90 D300 X-Dynamic SE – R1,494,600

Toyota Land Cruiser 300 3.5T GR-Sport – R1,936,200

Porsche 911 Carrera 4 coupe – R1,979,000

Maserati Quattroporte – R2,850,200

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Bentley Continental – R4,590,600

Ferrari Roma – R5,094,200

Read: Red flags for new car buyers in South Africa

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