{"id":719904,"date":"2023-09-25T15:00:00","date_gmt":"2023-09-25T13:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=719904"},"modified":"2023-09-22T16:14:55","modified_gmt":"2023-09-22T14:14:55","slug":"how-much-you-need-to-earn-to-finance-the-cheapest-bmw-audi-and-mercedes-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/719904\/how-much-you-need-to-earn-to-finance-the-cheapest-bmw-audi-and-mercedes-in-south-africa\/","title":{"rendered":"How much you need to earn to finance the cheapest BMW, Audi, and Mercedes in South Africa"},"content":{"rendered":"\n

The prices of new cars have increased substantially in South Africa, and those wanting to finance the cheapest models from Audi, BMW, or Mercedes-Benz will have to be among the top 7% of the country’s income earners. <\/p>\n\n\n\n

The latest TransUnion Vehicle Pricing Index (VPI) shows that the price of new vehicles outstripped inflation year-on-year in the second quarter of 2023. <\/p>\n\n\n\n

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.<\/p>\n\n\n\n

According to the report, the price of new vehicles, on average, increased by 6.7% in Q2 2023 \u2013 beating inflation by 1.3%, which was recorded at 5.4% in June 2023. <\/p>\n\n\n\n

The price increases in three segments further exceeded CPI, and the price of all new vehicles is forecasted to increase in the coming months, noted the report.<\/p>\n\n\n\n

On average, the price of all body types increased over the period, with medium SUVs and hatchbacks seeing the steepest increases at 7.4% in Q2 2023. Other YoY price increases included Small SUVs (6.8%), premium and hybrids (6.6%), Crossovers (6.4%), and Electric (3.1%).<\/p>\n\n\n\n

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Unsurprisingly, the cheapest cars from some of the most popular luxury brands are hatchbacks, which saw the steepest price increases year-on-year. <\/p>\n\n\n\n

Some of the most popular luxury brands in South Africa are Audi, BMW, and Mercedes-Benz, with the cheapest models from these manufacturers priced at well over R500,000 – except the Audi.<\/p>\n\n\n\n

The most affordable German luxury car is the Audi A1, with a price tag of R482,400, while the most expensive is the Mercedes-Benz A-Class, starting at a price of R796,559. <\/p>\n\n\n\n

Assuming a payment term of 60 months (five years), at a lending rate of 11.75% and a 0% deposit, the monthly instalment amount of the Audi A1 is roughly R10,765. <\/p>\n\n\n\n

Experts still recommend that prospective car owners spend no more than 25% of their monthly income on vehicle finance \u2013 meaning you’d have to earn no less than R43,060 per month to afford the cheapest car on this list. <\/p>\n\n\n\n

According to the World Inequality database, this puts you in the top 7% of income earners in South Africa \u2013 meaning 93% of the country’s population earns less than you.<\/p>\n\n\n\n

The cheapest Audi, BMW, and Mercedes-Benz are listed below \u2013 including the starting price, estimated monthly instalment, and the monthly salary required to afford the vehicle. <\/p>\n\n\n\n

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Audi A1 <\/strong><\/p>\n\n\n\n