How much you are likely to spend on a car – based on what you earn
Capitec has released a new graph detailing what type of transport you should be using based on your current monthly salary.
While the graph itself is based on Capitec data, the bank noted that a good rule of thumb is that the price of the car should be no more than 30% of your annual gross salary, and your monthly car costs should add up to no more than 10%.
Capitec also asked its clients how they would purchase a vehicle, with the answers equating to a near perfect three-way split. 37.17% said that they would require a hire purchase agreement, while 32.33% said they would opt for cash and 30.5% stated they would opt for a residual purchase.
Research by analytics group Lightstone also recently tackled the question of which cars you can afford based on your monthly salary.
The data was based on specific car models based and the value of the car you can afford based on your monthly salary, assuming 20% of the gross goes towards the vehicle, financed over 5 years.
The table below shows how much you could spend on a car based on your monthly salary – as well as examples of both new and second-hand cars in the given price range.
| Gross monthly salary | Car value* | Types of cars in range | Types of second-hand cars in range |
|---|---|---|---|
| R327 800 | R2 914 000 | Maserati Grandcabrio MC Automatic Cabriolet | Lamborghini Gallardo LP550-2 (2014) |
| R213 000 | R1 893 500 | Jaguar F-Type 5.0 V8 R Coupe AWD (2016) | Porche 911/997 3.8 Speedster Cabriolet PDK |
| R106 500 | R946 750 | Land Rover Range Rover Evoque 2.0 SI4 Autobiography (2016) | BMW 750i (2012) |
| R89 900 | R799 185 | BMW 440i Gran Coupe 8-SP Sports Model (2016) | Mercedes ML 500 Blue Efficiency 4×4 Automatic |
| R66 600 | R592 050 | Subaru Outback 3.6 RS AWD CVT (2016) | Toyota Landcruiser Prado 3.0 DT VX (2013) |
| R58 200 | R517 380 | Audi A4 2.0T FSI Sport S-Tronic (2016) | Jaguar XF 3.0D S Premium Luxury (2012) |
| R49 900 | R443 600 | Kia Sportage 2.0 AWD (2014) | Mitsubishi Pajero BK 3.2 DI-DC GLS (2012) |
| R41 600 | R369 800 | Mini Cooper Convertible 1.6 (2016) | Toyota Fortuner 3.0 D-4D 4×4 DSL Limited Edition |
| R33 300 | R296 000 | Mazda 3 2.0 Individual 5-DR (2014) | Audi TT Coupe 1.8T FSI |
| R23 300 | R207 130 | Hyundai i20 1.2 Motion 5-DR (2015) | Ford Ecosport 1.0 Ecoboost Titanium |
| R16 600 | R147 570 | Toyota Etios SD 1.5 XI (2015) | Honda Ballade 1.5 Elegance Automatic |
| R10 000 | R88 900 | Geely LC 1.0 GS 5-DR | Kia Picanto 1.0 5-DR (2011) |
| R6 300 | R53 340 | – | Chery QQ3 0.8 TE 5-DR |
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