{"id":726110,"date":"2023-10-22T15:00:00","date_gmt":"2023-10-22T13:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=726110"},"modified":"2023-10-20T13:14:24","modified_gmt":"2023-10-20T11:14:24","slug":"how-much-you-need-to-earn-to-afford-the-cheapest-bmw-audi-and-mercedes-suv-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/726110\/how-much-you-need-to-earn-to-afford-the-cheapest-bmw-audi-and-mercedes-suv-in-south-africa\/","title":{"rendered":"How much you need to earn to afford the cheapest BMW, Audi, and Mercedes SUV in South Africa"},"content":{"rendered":"\n

SUVs have been a staple vehicle category in South Africa due to the country’s harsh roads and farmlands, but those wanting to finance the cheapest models from Audi, BMW, or Mercedes-Benz will have to be among the top 4% of the country\u2019s 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 SUVs and hatchbacks seeing the steepest increases at 7.4% in Q2 2023.<\/strong> 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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Some of the most popular luxury brands in South Africa are Audi, BMW, and Mercedes-Benz, with the cheapest SUV models from these manufacturers priced at just over R1 million \u2013 except the BMW.<\/p>\n\n\n\n

The most affordable German luxury car is the BMW X3, with a price tag of R981,224, while the most expensive is the Mercedes-Benz GLC, starting at a price of R1,156,053.<\/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 BMW X3 is roughly R21,799.<\/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\u2019d have to earn no less than R87,000 per month to afford the cheapest SUV on this list.<\/strong><\/p>\n\n\n\n

According to the World Inequality database, this puts you in the top 4% of income earners in South Africa \u2013 meaning 96% of the country\u2019s 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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BMW X3<\/strong><\/p>\n\n\n\n