{"id":743959,"date":"2024-01-21T15:00:00","date_gmt":"2024-01-21T13:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=743959"},"modified":"2024-01-19T16:26:30","modified_gmt":"2024-01-19T14:26:30","slug":"how-much-you-need-to-earn-to-afford-the-cheapest-audi-bmw-and-merc-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/743959\/how-much-you-need-to-earn-to-afford-the-cheapest-audi-bmw-and-merc-in-south-africa\/","title":{"rendered":"How much you need to earn to afford the cheapest Audi, BMW, and Merc in South Africa"},"content":{"rendered":"\n

The cost of new cars in South Africa has risen significantly, requiring a prospective car buyer in South Africa to be in the top 7% of earners to finance the cheapest models from Audi, BMW, or Mercedes-Benz.<\/p>\n\n\n\n

The latest TransUnion Vehicle Pricing Index (VPI) shows that the price of new vehicles outstripped inflation year-on-year at the end 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 6.5% in Q3 2023 \u2013 beating inflation by 0.6%, which was recorded at 5.9% in November 2023.<\/p>\n\n\n\n

The price increases in almost all segments exceeded CPI,  with the exception being electric vehicles (only 1.3%), which skewed the average of 6.5%, noted the report.<\/p>\n\n\n\n

On average, the price of all body types increased over the period, with hybrids and hatchbacks seeing the steepest increases at 8% in Q3 2023. Other YoY price increases included: Small SUVs (6.6%), Mid SUVs (7.3%), Premium (5.6%), and Crossovers (6.9%).<\/p>\n\n\n\n

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 \u2013 except the Audi.<\/p>\n\n\n\n

The most affordable German luxury car is the Audi A1, with a price tag of R487,300 \u2013 increasing from R482,400 in September 2023. <\/p>\n\n\n\n

Despite the increase, it’s still over R200,000 cheaper than the BMW 1 Series (R691,072) and over R300,000 cheaper than the most expensive of the three, the Mercedes-Benz A-Class (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\u2019d have to earn no less than R43,500 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\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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Audi A1<\/strong><\/p>\n\n\n\n