{"id":784249,"date":"2024-07-26T12:31:48","date_gmt":"2024-07-26T10:31:48","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=784249"},"modified":"2024-07-26T12:31:53","modified_gmt":"2024-07-26T10:31:53","slug":"the-cars-you-can-afford-with-your-salary-in-south-africa-in-2024","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/784249\/the-cars-you-can-afford-with-your-salary-in-south-africa-in-2024\/","title":{"rendered":"The cars you can afford with your salary in South Africa in 2024"},"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

In 2024, more than 70% of all the cars in South Africa now cost more than R500,000.<\/p>\n\n\n\n

The latest TransUnion Vehicle Pricing Index (VPI) shows that while the average price of new vehicles stays just below inflation year-on-year, some body types outstripped CPI in the first quarter of 2024.<\/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 increased by 4.7% on average in Q1 2024\u2014just under inflation by 0.5%, which was recorded at 5.2%.<\/p>\n\n\n\n

The report noted that the price increases in three segments further exceeded CPI.<\/p>\n\n\n\n

On average, the price of all body types increased over the period, with hatchbacks and crossovers seeing the steepest increases at 8.4% and 6.4%, respectively, in Q1 2024. <\/p>\n\n\n\n

Other YoY price increases included premium hatchbacks (6.1%), hybrids (5.1%), SUVs (4.2%), and Electric (1.3%).<\/p>\n\n\n

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It\u2019s concerning to see that hatchbacks, traditionally the most affordable segment in car brands, have seen the steepest price increases year over year. <\/p>\n\n\n\n

This trend is largely attributed to the local economy’s poor performance and the volatile rand\/US dollar exchange rate, making it substantially more expensive to import and sell vehicles in recent years.<\/p>\n\n\n\n

Consequently, the availability of affordable cars for those earning at the lower end of the salary spectrum has decreased. <\/p>\n\n\n\n

As of July 2024, no cars are available for under R180,000, with the sole exception being Suzuki\u2019s S-Presso priced at R178,900 \u2014 a situation not seen a few years ago. <\/p>\n\n\n\n

Throughout 2023 and 2024, motorists have faced the challenge of increasingly expensive cars, a result of both national and international factors like inflation, and shortages of chips and other auto parts, which have impacted the industry throughout this year.<\/p>\n\n\n\n

What you can afford <\/strong><\/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. <\/p>\n\n\n\n

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