The only new cars you can buy for R5,000 a month in South Africa

There are only seven hatchbacks, including three with an automatic transmission, that can be afforded on a monthly instalment budget of R5,000.

The skyrocketing prices of new cars have made it difficult for the average South African to afford a vehicle, with less than 25% of all car models priced under R500,000.

Car prices have risen significantly in recent years due to various factors, including inflation, supply chain disruptions, safety and legal requirements, and changing consumer preferences.

The Covid-19 pandemic led to a drop in car demand, prompting most car brands to raise prices to survive.

Additionally, consumer expectations have influenced the standard features in modern cars, with common inclusions such as infotainment touchscreens, air conditioning, cruise control, LED headlights, and more.

However, integrating these features comes at a cost, making cars more expensive.

While there are hatchbacks that offer all the luxuries a modern-day car can provide at a premium price, such as those from BMW and Audi, the segment also includes some of the most affordable cars on the market.

This makes hatchbacks an appealing option for budget-conscious buyers seeking a reliable and efficient vehicle.

Considering this, BusinessTech looked at the best vehicles one could afford with a monthly instalment budget of R5,000.

A budget of R5,000 a month affords only a handful of cars currently available on the South African market, Two of which are among the most popular hatchbacks, according to Naamsa’s latest new vehicle sales reports.

To calculate the monthly instalments of the vehicles on this list, we used  Wesbank’s repayments calculator with the following parameters:

• Payment term – 60 terms (5 years)
• Interest – 11.75%
• Deposit – 0%
• Balloon – No balloon payment
• Extras – No optional extras

Using these assumptions, seven new vehicle models are affordable with a monthly instalment budget of R5,000, including three automatics.

The cheapest of these automatic cars is the Suzuki S-Presso 1.0 GL+ Auto, which costs R203,900 or R4,606 per month.

The other cars with automatic transmissions are the Renault Kwid (R216,999 or R4,895 per month), and the Proton Saga (R224,900 or R4,904 per month).

It must be noted that while some of these cars offer cheaper models in their range – equating to an even cheaper monthly instalment – we chose the top-spec models one can afford with a budget of R5,000 per month.

For example, while the Suzuki S-Presso S-Edition auto costs R203,900, the model’s entry-level variant costs only R178,900—that’s an instalment of only R4,052 per month.

With this in mind, the seven best cars you can afford on a R5,000 monthly instalment budget are listed below.

Suzuki S-Presso 1.0 GL+ Auto 

• Car price: R203,900
• Estimated monthly instalment: R4,606
• Model starting price: R178,900

Suzuki Celerio 1.2 GL

• Car price: R210,900
• Estimated monthly instalment: R4,760
• Model starting price: R188,900

Suzuki DZire 1.2 GL 

• Car price: R211,900
• Estimated monthly instalment: R4,783
• Model starting price: R211,900

Suzuki Swift 1.2 GA

• Car price: R213,900
• Estimated monthly instalment: R4,827
• Model starting price: R213,900

Renault Kwid 1.0 Zen Auto 

• Car price: R216,999
• Estimated monthly instalment: R4,895
• Model starting price: R196,999

Toyota Vitz 1.0 XR 

• Car price: R219,900
• Estimated monthly instalment: R4,904
• Model starting price: R189,900

Proton Saga 1.3 Standard Auto 

• Car price: R224,900
• Estimated monthly instalment: R4,904
• Model starting price: R209,900

Read: 18 new cars launching in South Africa in the coming months