How much you need to earn to afford the cheapest BMW, Audi, and Mercedes SUV in South Africa

 ·22 Oct 2023

SUVs have been a staple vehicle category in South Africa due to the country’s harsh roads and farmlands, but those wanting to finance the cheapest models from Audi, BMW, or Mercedes-Benz will have to be among the top 4% of the country’s income earners.

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 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%).

Some of the most popular luxury brands in South Africa are Audi, BMW, and Mercedes-Benz, with the cheapest SUV models from these manufacturers priced at just over R1 million – except the BMW.

The most affordable German luxury car is the BMW X3, with a price tag of R981,224, while the most expensive is the Mercedes-Benz GLC, starting at a price of R1,156,053.

Assuming a payment term of 60 months (five years), at a lending rate of 11.75% and a 0% deposit, the monthly instalment amount of the BMW X3 is roughly R21,799.

Experts still recommend that prospective car owners spend no more than 25% of their monthly income on vehicle finance – meaning you’d have to earn no less than R87,000 per month to afford the cheapest SUV on this list.

According to the World Inequality database, this puts you in the top 4% of income earners in South Africa – meaning 96% of the country’s population earns less than you.

The cheapest Audi, BMW, and Mercedes-Benz are listed below – including the starting price, estimated monthly instalment, and the monthly salary required to afford the vehicle.


BMW X3

  • Starting price: R981,224
  • Monthly instalment: R21,799 pm
  • Estimated monthly salary required: R87,192 pm

Audi Q5

  • Starting price: R1,012,000
  • Monthly instalment: R15,381
  • Estimated monthly salary required: R61,524

Mercedes-Benz GLC

  • Starting price: R1,156,053
  • Monthly instalment: R17,714
  • Estimated monthly salary required: R70,856

Read: The most valuable classic BMWs in South Africa

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