The cars you can afford with your salary in South Africa right now
The prices of new cars have increased substantially in South Africa, potentially shifting the number of new car options available to you depending on your salary.
The latest TransUnion Vehicle Pricing Index (VPI) shows that the price of new vehicles outstripped inflation year-on-year in the second quarter of 2023.
The index measures the relationship between the increase in vehicle pricing for new and used vehicles from a basket of passenger vehicles incorporating 15 top-volume manufacturers.
According to the report, the price of new vehicles, on average, increased by 6.7% in Q2 2023 – beating inflation by 1.3%, which was recorded at 5.4% in June 2023.
The price increases in three segments further exceeded CPI, and the price of all new vehicles is forecasted to increase in the coming months, noted the report.
On average, the price of all body types increased over the period, with medium SUVs and hatchbacks seeing the steepest increases at 7.4% in Q2 2023. Other YoY price increases included Small SUVs (6.8%), premium and hybrids (6.6%), Crossovers (6.4%), and Electric (3.1%).
Concerningly, hatchbacks – a segment that offers the most affordable options among car brands – saw the steepest price increases year-on-year.
This means that fewer cars are remaining available for those earning on the lower end of the salary spectrum. As it stands, in September 2023, there are no cars available for under R170,000 – the only exception being Suzuki’s S-Presso but at a price of R169,900 – which wasn’t the case a few years ago.
Throughout 2023, motorists have grappled with increasingly more expensive cars due to national and international headwinds, such as inflation, chip and other auto part shortages that have plagued the industry over the course of this year.
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 11.75%. This follows the recent interest rate decision by the South African Reserve Bank in September to hold rates.
These calculations are purely for comparison purposes and are not meant as financial advice.
| Price of car | Monthly repayment | Minimum gross monthly salary required |
|---|---|---|
| R170 000 | R3 856 | R15 424 |
| R200 000 | R4 519 | R18 076 |
| R300 000 | R6 731 | R26 924 |
| R500 000 | R11 154 | R44 616 |
| R750 000 | R16 684 | R66 736 |
| R1 000 000 | R22 214 | R88 856 |
| R2 000 000 | R44 332 | R177 328 |
| R5 000 000 | R110 687 | R442 748 |
Below is an overview of the new cars you can currently buy in South Africa at each of these price points:
Earning between R15,000 – R17,000
Suzuki S-Presso 1.0 GL – R169,900
Suzuki Celerio 1.0 GA – R183,900
Earning R20,000
Renault Kwid 1.0 Climber – R209,999
Suzuki Ignis 1.2 GL – R217,900
Suzuki Swift 1.2 GL – R218,900
Toyota Vitz 1.0 XR X-Cite – R219,900
Between R24,000 – R26,000
Suzuki Baleno 1.5 GL auto – R259,900
Nissan Magnite 1.0 Acenta Plus – R263,100
Mahindra XUV300 1.2T W4 – R267,999
Volkswagen Polo Vivo hatch 1.4 Comfortline – R276,500
Suzuki Fronx 1.5 GL manual – R279,900
Chery Tiggo 4 Pro 1.5 LiT manual – R279,900
Earning up to R35,000
Toyota Urban Cruiser 1.5 XR auto – R369,900
Hyundai Venue 1.0T Motion manual – R379,900
Volkswagen Polo hatch 1.0TSI 70kW Life – R385,300
Haval Jolion 1.5T Luxury – R385,550
Peugeot 208 1.2T Allure – R389,900
Honda BR-V 1.5 Trend – R389,900
Between R40,000 – R45,000
Volkswagen T-Cross 1.0TSI 85kW Comfortline – R456,100
Toyota Corolla Cross 1.8 Hybrid XS – R476,600
Omoda C5 1.5T 230T Lux – R477,900
Audi A1 Sportback 30TFSI Advanced – R482,400
Kia Seltos 1.5CRDi EX auto – R488,995
Opel Mokka 1.2T Elegance – R489,900
Between R62,000 – R65,000
BMW 118d – R704,250
Toyota Hilux 2.4GD-6 double cab 4×4 Raider auto – R704,300
Audi Q3 35TFSI Advanced – R728,100
Toyota Fortuner 2.4GD-6 4×4 – R731,100
Between R83,000 – R85,000
Ford Everest 2.0 BiTurbo 4×4 XLT – R913,400
Toyota Crown 2.5 Hybrid E-Four – R918,900
Mercedes-Benz GLA200d Progressive – R927,900
Volvo EX30 Plus Twin Motor Performance – R935,900
Lexus UX 250h SE – R946,200
Upwards of R100,000
BMW M440i xDrive Gran Coupe – R1,413,966
Jaguar E-Pace P300e AWD R-Dynamic SE – R1,613,000
Land Rover Defender 90 D300 X-Dynamic HSE – R1,777,500
Toyota Land Cruiser 300 3.5T GR-Sport – R2,095,100
Porsche 911 Carrera 4 coupe – R2,300,000
Bentley Continental – R5,120,000
Ferrari Roma – R6,300,000
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