{"id":676359,"date":"2023-04-01T17:00:37","date_gmt":"2023-04-01T15:00:37","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=676359"},"modified":"2023-04-03T12:34:20","modified_gmt":"2023-04-03T10:34:20","slug":"the-cars-you-can-afford-on-the-average-salary-in-south-africa-right-now","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/676359\/the-cars-you-can-afford-on-the-average-salary-in-south-africa-right-now\/","title":{"rendered":"The cars you can afford on the average salary in South Africa right now"},"content":{"rendered":"

There are 26 passenger vehicles currently on the market that can be afforded with the average salary in South Africa right now.<\/p>\n

According to Stats SA’s latest<\/a> quarterly employment survey (QES) for the fourth quarter of the year ending December 2022, the average salary in South Africa is now R26,032 a month.<\/strong><\/p>\n

This is an increase of 4.5% from the previous quarter, where it was R24,813, and up 9.2% from the fourth quarter of 2021 at R23,828.<\/p>\n

Data published by The University of Cape Town’s Liberty Institute of Strategic Marketing showed that a household needs to earn around R22,000 to be considered middle class in South Africa.<\/p>\n

This would mean that the average formally-employed non-agricultural worker in the country would fit into that class category.<\/p>\n

Notably, the South African Reserve Bank\u2019s (SARB\u2019s) Monetary Policy Committee surprised<\/a> the market expectations on Thursday (30 March) by hiking the interest rate by 50 basis points \u2013 25 points more than what economists and analysts forecasted.<\/p>\n

The latest rate hike marks the ninth hike in the current cycle, with the total adjustment being 425 basis points since the hike cycle started in November 2021.<\/p>\n

Rates are now at their highest point in 13 years (June 2009), when the fallout from the global financial crisis weighed on the local currency.<\/p>\n

The recent rate hike means that those who earn the average salary can afford 26 vehicles currently on the market in South Africa.<\/p>\n

This assumes that these individuals spend no more than 25% of their monthly income on vehicle-related costs, which is the recommended cap by industry experts.<\/p>\n

This should apply to the whole vehicle expense, including:<\/p>\n