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Analytics group Lightstone recently released a report detailing the value of the type of second-hand car you can afford based on your monthly salary in South Africa in 2018.<\/p>\n
The report is based on current South African vehicle prices and salaries (May 2018), and assumes that people are not going to spend more than 20% of their gross monthly income on financing a car. The calculations also assume that the vehicles are financed over five years at an interest rate of prime +2%.<\/p>\n
According to TransUnion’s latest Vehicle Pricing Index, the make-up of used vehicle sales has shown that 46% are under two years old and 9% were demo models which indicates consumers are opting for cars that are less than two years old.<\/p>\n
The percentage of cars (new and used) being financed below R200,000 has remained consistent to last quarters numbers with 43% in Q1.<\/p>\n
“This has shown a marginal increase in used car loans which has being consistent at around R242,000. This indicates a shifting emphasis on the value proposition that consumers place on their vehicles, as they look for the maximum amount of value from a car,” TransUnion said.<\/p>\n
When it comes to the types of cars, unsurprisingly, Toyota and VW dominate both the new and used space, capturing more than 35% of the new and used passenger financed volumes, through vehicles including the Polo and Vivo range, the Fortuner and Corolla models.<\/p>\n
Using this R242,000 amount, Lightstone estimates that you would need to earn between R26,000-R30,000 to pay for the average second-hand car purchase in South Africa.<\/p>\n
Pricing is based on:<\/p>\n
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