{"id":785999,"date":"2024-08-10T17:00:00","date_gmt":"2024-08-10T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=785999"},"modified":"2024-08-08T17:37:40","modified_gmt":"2024-08-08T15:37:40","slug":"the-average-cost-of-a-car-in-south-africa-in-2024-and-what-you-can-buy-with-it","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/785999\/the-average-cost-of-a-car-in-south-africa-in-2024-and-what-you-can-buy-with-it\/","title":{"rendered":"The average cost of a car in South Africa in 2024 \u2013 and what you can buy with it"},"content":{"rendered":"\n

The average value of vehicle finance in the first quarter of 2024 in South Africa is R391,000, and at this price point, you can buy roughly 21 cars.<\/p>\n\n\n\n

The skyrocketing prices of new cars have made it difficult for the average South African to afford a vehicle, with less than a quarter of all car models priced under R500,000. <\/p>\n\n\n\n

Based on TopAuto\u2019s list of cars available in South Africa, it is estimated that there are currently 1,481 car models for sale in the country. <\/p>\n\n\n\n

This number includes passenger vehicles and excludes medium and heavy commercial vehicles. <\/p>\n\n\n\n

Of these models, 1,082 now cost over R500,000, representing almost 75% of the new car market \u2013 meaning only 25% are priced under the half-a-million rand mark. <\/p>\n\n\n\n

Experts and stakeholders in the industry have explained the significant increases in car prices as a result of several factors, such as inflation, supply chain disruptions, safety and legal requirements, and changing consumer preferences.<\/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 vehicles (1.3%). <\/p>\n\n\n\n

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\u2019s 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. 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

In Q1 2024, this resulted in the average loan value rising to R391,000, reflecting higher prices and a shift in consumer preferences toward more premium vehicle segments.<\/strong><\/p>\n\n\n\n

This algins with data from finance house WesBank, which shows that the average consumer spent R392,174 on a new car in the first quarter of 2024, a noteworthy increase of 24% over the corresponding period in 2019.<\/p>\n\n\n\n

The increasing car prices have broader implications for South Africa. <\/p>\n\n\n\n

With fewer affordable options available, South Africans are either forced to purchase used cars, which may come with higher maintenance costs, or take on larger loans for new vehicles, increasing household debt, which seems to be the case. <\/p>\n\n\n\n

Coinsidering the average financed amounf of R391,000, we looked at all thecars that cost between R380,000 and R400,000 to give you an idea on the cars you can buy aorund this price point.<\/p>\n\n\n\n

These 21 cars are listed below.<\/p>\n\n\n\n

\n\n\n\n

Honda Fit 1.5 Comfort \u2013 R380,500<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Nissan Navara 2.5 single cab<\/strong> \u2013 R381,000<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Toyota Urban Cruiser 1.5 XR auto \u2013 R382,900<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Mitsubishi Xpander 1.5 auto \u2013 R385,995<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Toyota Rumion 1.5 TX auto \u2013 R386,500<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Chery Tiggo 4 Pro 1.5T Elite auto \u2013 R386,900 <\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Mahindra XUV300 1.5TD W8<\/strong> \u2013 R386,999<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Mahindra Pik Up 2.2CRDe single cab \u2013 R389,999<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

GWM Steed 5 2.0VGT double cab \u2013 R390,150<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Honda Ballade 1.5 Comfort \u2013 R390,500<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Fiat Tipo hatch 1.4 City Life \u2013 R390,900<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Haval Jolion Pro 1.5T Premium \u2013 R391,150<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Kia Sonet 1.5 LX auto \u2013 R391,995<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Toyota Corolla Quest 1.8 Prestige auto \u2013 R394,000<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Opel Corsa 1.2T Edition \u2013 R394,900<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Volkswagen Polo sedan 1.6 Life manual \u2013 R397,700<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Renault Duster 1.5dCi Zen manual \u2013 R397,999<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

JAC T8 2.0CTI double cab Lux \u2013 R399,900<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Suzuki Jimny <\/strong>1.5 GL AllGrip 3-door manual \u2013 R399,900<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Foton Tunland G7 2.0TD double cab \u2013 R399,900<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Volkswagen Polo hatch 1.0TSI 70kW Life \u2013 R401,400<\/strong><\/p>\n\n\n\n

\"\"<\/a><\/figure>\n\n\n\n
\n\n\n\n

Read: The hidden \u2018luxury\u2019 tax South Africans pay on all cars over R250,000<\/a><\/strong><\/p>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

The average value of vehicle finance in the first quater of 2024 in South Africa is 24% higher than seen in 2019, and, surprisiongly, there is a relatively limited number of cars to choose from at this price point.<\/p>\n","protected":false},"author":92,"featured_media":786052,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11119],"tags":[853],"class_list":["post-785999","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-motoring","tag-south-africa"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/785999","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=785999"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/785999\/revisions"}],"predecessor-version":[{"id":786285,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/785999\/revisions\/786285"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/786052"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=785999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=785999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=785999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}