{"id":622333,"date":"2022-09-03T17:00:34","date_gmt":"2022-09-03T15:00:34","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=622333"},"modified":"2022-09-02T14:47:11","modified_gmt":"2022-09-02T12:47:11","slug":"the-cars-you-can-afford-with-your-salary-in-south-africa-right-now","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/622333\/the-cars-you-can-afford-with-your-salary-in-south-africa-right-now\/","title":{"rendered":"The cars you can afford with your salary in South Africa right now"},"content":{"rendered":"

South Africa’s new vehicle sales are following the same trend as the year before, with August being the second-best performing month in terms of vehicle sales.<\/p>\n

Vehicle financing firm Wesbank said that year-on-year comparisons are appearing to show consistency, and it is indicative of some type of stability returning to the domestic vehicle market.<\/p>\n

According to the National Association of Automobile Manufacturers in South Africa (Naamsa), there were 47,420 new vehicle registrations in August.<\/p>\n

“It is interesting to note the correlation in market performance this year against 2021,” said Lebogang Gaoaketse, head of marketing and communications at WesBank.<\/p>\n

“Last year, August put in the second-best selling month at the time, March 2021 being the best sales month. Coincidentally, March 2022 sales have so far been this year\u2019s best sales month.”<\/p>\n

If it could be defined as a trend, the market prospects for the remainder of the year could hold further promise. August 2021 sales were usurped by September and then November volumes last year, said Wesbank.<\/p>\n

In turn, more people could be purchasing cars despite more interest rate increases being inevitable this year.<\/p>\n

“Applications for finance continue to show a growing demand for vehicle replacement, with WesBank\u2019s book showing strong double-digit growth being driven by applications for new vehicles,” said Gaoketse.<\/p>\n

When considering purchasing a new car, Kutlwano Mogatusi, WesBank Retail communications specialist, said that as a general rule, you shouldn\u2019t spend more than 20% of your total income on car repayments.<\/strong><\/p>\n

Mogatusi said if you are making your purchase choices responsibly because it is what you can afford, rather than what you desire, you are making the best life choices.<\/p>\n

\u201cIt is also important to budget for the other expenses that come with vehicle ownership such as fuel, insurance, maintenance and service costs \u2013 in addition to keeping up with all other financial commitments to maintain a positive credit history,\u201d the lender said.<\/p>\n

\n

Here\u2019s what you can afford<\/strong><\/p>\n

BusinessTech looked at what you can afford to buy on your monthly salary \u2013 based on the assumption that people are not spending more than 25% of their gross monthly income on vehicle financing.<\/p>\n

The following calculations were completed using\u00a0Wesbank\u2019s<\/a>\u00a0repayment calculator and include the assumption of a 0% deposit for car financing. Additional fees which could be incurred during the inception of the loan are excluded from the calculation.<\/p>\n

For purposes of these calculations, the cars are financed over five years (60 months) at an annual interest rate of 9%.<\/p>\n

These calculations are purely for comparison purposes and are not meant as financial advice.<\/em><\/p>\n

\n
\n\n\n\n\n\n\n\n\n\n\n
Price of car<\/th>\nMonthly repayment<\/th>\nGross monthly salary required<\/th>\n<\/tr>\n
R150 000<\/td>\nR3 208<\/td>\nR12 831<\/td>\n<\/tr>\n
R200 000<\/td>\nR4 246<\/td>\nR16 982<\/td>\n<\/tr>\n
R300 000<\/td>\nR6 322<\/td>\nR25 286<\/td>\n<\/tr>\n
R500 000<\/td>\nR10 473<\/td>\nR41 892<\/td>\n<\/tr>\n
R750 000<\/td>\nR15 663<\/td>\nR62 651<\/td>\n<\/tr>\n
R1 000 000<\/td>\nR20 852<\/td>\nR83 409<\/td>\n<\/tr>\n
R2 000 000<\/td>\nR41 611<\/td>\nR166 443<\/td>\n<\/tr>\n
R5 000 000<\/td>\nR103 886<\/td>\nR415 543<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n

Here is a list of cars you may currently purchase in South Africa at each of the indicated price points:<\/p>\n

\n

Between R16,000 – R25,000 per month:<\/strong><\/p>\n

Suzuki S-Presso<\/strong> – R156,900<\/a><\/p>\n

\"\"<\/a><\/p>\n

Kia Picanto X-Line<\/strong>\u00a0– R198,995<\/a><\/p>\n

\"\"<\/a><\/p>\n

Mahindra XUV300 <\/strong>– R234,999<\/a><\/p>\n

\"\"<\/a><\/p>\n

Toyota Urban Cruiser\u00a0<\/strong>– R274,900<\/a><\/p>\n

\"\"<\/a><\/p>\n

Hyundai Grand i20\u00a0<\/strong>– R290,900<\/a><\/p>\n

\"\"<\/a><\/p>\n

\n

Between<\/strong> R25,000 – R42,000 per month<\/b><\/p>\n

Ford EcoSport <\/strong>– R311,400<\/a><\/p>\n

\"\"<\/a><\/p>\n

Volkswagen T-Cross <\/strong>– R368,900<\/a><\/p>\n

\"\"<\/a><\/p>\n

Volkswagen Taigo <\/strong>–\u00a0R429,900<\/a><\/p>\n

\"\"<\/a><\/p>\n

\n

Between R42,000 – R83,500 per month<\/strong><\/p>\n

Mazda CX-5<\/strong> – R515,400<\/a><\/p>\n

\"\"<\/a><\/p>\n

Honda HR-V Executive CVT <\/strong> – R554,500<\/a><\/p>\n

\"\"<\/a><\/p>\n

BMW 2 Series Gran Coup\u00e9\u00a0<\/strong>– R665,000<\/a><\/p>\n

\"\"<\/a><\/p>\n

VW Amarok <\/strong>– R764,500<\/a><\/p>\n

\"\"<\/a><\/p>\n

\n

Around R83,500 or upwards per month<\/strong><\/p>\n

BMW X3<\/strong> – R932,500<\/a><\/p>\n

\"\"<\/a><\/p>\n

\n

Mercedes <\/strong>EQA <\/strong>–\u00a0R1,169,500<\/a><\/p>\n<\/div>\n

\"\"<\/a><\/p>\n

Audi RS3 Sportback <\/strong>\u2013 R1,215,000<\/a>\"\"<\/a><\/p>\n<\/div>\n

E-tron GT Quattro <\/strong>–\u00a0R2,715,000<\/a><\/p>\n

\"\"<\/a><\/p>\n

Mercedes <\/strong>EQS <\/strong>– R2,615,100<\/a><\/p>\n

\"\"<\/a><\/p>\n

\n
\n

Read: Expect a big petrol price cut next week<\/a><\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

BusinessTech looked at what you can afford to buy on your monthly salary \u2013 based on the assumption that people are not spending more than 25% of their gross monthly income on vehicle financing.<\/p>\n","protected":false},"author":10,"featured_media":622489,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[11119],"tags":[26,6619],"class_list":["post-622333","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-headline","tag-wesbank"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/622333","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=622333"}],"version-history":[{"count":20,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/622333\/revisions"}],"predecessor-version":[{"id":622579,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/622333\/revisions\/622579"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/622489"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=622333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=622333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=622333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}