{"id":722072,"date":"2023-10-01T13:00:00","date_gmt":"2023-10-01T11:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=722072"},"modified":"2023-09-29T15:04:09","modified_gmt":"2023-09-29T13:04:09","slug":"the-cars-you-can-afford-with-your-salary-in-south-africa-right-now-2","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/722072\/the-cars-you-can-afford-with-your-salary-in-south-africa-right-now-2\/","title":{"rendered":"The cars you can afford with your salary in South Africa right now"},"content":{"rendered":"\n

The prices of new cars have increased substantially in South Africa, potentially shifting the number of new car options available to you depending on your salary.<\/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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Concerningly, hatchbacks – a segment that offers the most affordable options among car brands – saw the steepest price increases year-on-year.<\/p>\n\n\n\n

This means that fewer cars are remaining available for those earning on the lower end of the salary spectrum. As it stands, in September 2023, there are no cars available for under R170,000 – the only exception being Suzuki’s S-Presso but at a price of R169,900 – which wasn’t the case a few years ago. <\/p>\n\n\n\n

Throughout 2023, motorists have grappled with increasingly more expensive cars due to national and international headwinds, such as inflation, chip and other auto part shortages that have plagued the industry over the course of this year.<\/p>\n\n\n\n

Industry experts still recommend that prospective buyers shouldn\u2019t spend more than a quarter (25%) of their monthly income on vehicle-related costs. So, if you earn R20,000 per month, your total vehicle expenses should not exceed R5,000. And this should apply to the whole vehicle expense, including:<\/p>\n\n\n\n