The average cost of a car in South Africa in 2024 – and what you can buy with it

·10 Aug 2024

The average value of vehicle finance in the first quarter of 2024 in South Africa is R391,000, and at this price point, you can buy roughly 21 cars.

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

Based on TopAuto’s list of cars available in South Africa, it is estimated that there are currently 1,481 car models for sale in the country.

This number includes passenger vehicles and excludes medium and heavy commercial vehicles.

Of these models, 1,082 now cost over R500,000, representing almost 75% of the new car market – meaning only 25% are priced under the half-a-million rand mark.

Experts and stakeholders in the industry have explained the significant increases in car prices as a result of several factors, such as inflation, supply chain disruptions, safety and legal requirements, and changing consumer preferences.

The latest TransUnion Vehicle Pricing Index (VPI) shows that while the average price of new vehicles stays just below inflation year-on-year, some body types outstripped CPI in the first quarter of 2024.

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 increased by 4.7% on average in Q1 2024—just under inflation by 0.5%, which was recorded at 5.2%.

The report noted that the price increases in three segments further exceeded CPI.

On average, the price of all body types increased over the period, with hatchbacks and crossovers seeing the steepest increases at 8.4% and 6.4%, respectively, in Q1 2024.

Other YoY price increases included premium hatchbacks (6.1%), hybrids (5.1%), SUVs (4.2%), and electric vehicles (1.3%).

It’s concerning to see that hatchbacks, traditionally the most affordable segment in car brands, have seen the steepest price increases year over year.

This trend is largely attributed to the local economy’s poor performance and the volatile rand/US dollar exchange rate, making it substantially more expensive to import and sell vehicles in recent years.

Consequently, the availability of affordable cars for those earning at the lower end of the salary spectrum has decreased. As of July 2024, no cars are available for under R180,000, with the sole exception being Suzuki’s S-Presso priced at R178,900 — a situation not seen a few years ago.

In Q1 2024, this resulted in the average loan value rising to R391,000, reflecting higher prices and a shift in consumer preferences toward more premium vehicle segments.

This algins with data from finance house WesBank, which shows that the average consumer spent R392,174 on a new car in the first quarter of 2024, a noteworthy increase of 24% over the corresponding period in 2019.

The increasing car prices have broader implications for South Africa.

With fewer affordable options available, South Africans are either forced to purchase used cars, which may come with higher maintenance costs, or take on larger loans for new vehicles, increasing household debt, which seems to be the case.

Coinsidering the average financed amounf of R391,000, we looked at all thecars that cost between R380,000 and R400,000 to give you an idea on the cars you can buy aorund this price point.

These 21 cars are listed below.

Honda Fit 1.5 Comfort – R380,500