{"id":819113,"date":"2025-04-05T13:00:00","date_gmt":"2025-04-05T11:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=819113"},"modified":"2025-04-05T13:00:50","modified_gmt":"2025-04-05T11:00:50","slug":"cars-you-can-buy-on-the-average-salary-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/819113\/cars-you-can-buy-on-the-average-salary-in-south-africa\/","title":{"rendered":"Cars you can buy on the average salary in South Africa"},"content":{"rendered":"\n

As of April 2025, someone earning the average salary in South Africa has 17 new cars from 10 different brands to choose from.<\/p>\n\n\n\n

According to the latest Quarterly Employment Survey (QES) from Stats SA, the average salary in South Africa increased by 5.3% year-on-year to R28,231 in the fourth quarter of 2024. <\/p>\n\n\n\n

The QES highlighted that the average salary has dropped by 0.2% quarter-on-quarter from the revised estimate of R28,274 in Q3 2024.<\/p>\n\n\n\n

However, the 5.3% year-on-year increase is higher than the average inflation for 2024 (4.4%), meaning salaries have increased in real terms year over year<\/span>.<\/p>\n\n\n\n

The Q4 data covers the final quarter of 2024, ending December. The QES represents data for South Africa\u2019s formal non-agricultural job market.<\/p>\n\n\n\n

Over the period, gross earnings paid to employees increased by R59.1 billion or 6.1% from R969.4 billion in September 2024 to R1.03 trillion in December 2024.<\/p>\n\n\n\n

Stats SA said this was due to increases in trade, manufacturing, community services, business services, construction, transport and electricity.<\/p>\n\n\n\n

Year-on-year gross earnings increased by R35.5 billion or 3.6% between December 2023 and December 2024.<\/p>\n\n\n\n

The boost in earnings over the period was driven mainly by bonuses, reflecting the end-of-year period where these rewards are paid out.<\/p>\n\n\n\n

Basic salaries and wages paid to employees increased by only 1.1% or R9.5 billion over the period, though in line with inflation year-on-year, up 4%.<\/p>\n\n\n\n

Bonuses, meanwhile, were up by R51.8 billion or 85.4% from the prior quarter\u2014up 3.2% year on year from December 2023.<\/p>\n\n\n\n

Stats SA said that while overall earnings are rising, the latest figures highlight a labour market experiencing growth and disparities, with some sectors thriving while others struggle to keep pace.<\/p>\n\n\n\n

The statistics body noted that while recent figures show short-term increases in both full-time and part-time employment, the overall labour market still faces challenges, especially compared to last year\u2019s performance.<\/p>\n\n\n\n

Cars you can afford on the average salary <\/h2>\n\n\n\n
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Financing experts advise that individuals should allocate no more than 25% of their monthly income to vehicle-related expenses.<\/p>\n\n\n\n

For someone earning an average salary of R28,231, this translates to a budget of R7,058 per month for car costs, including instalments, insurance, and fuel.<\/p>\n\n\n\n

Given this guideline, the portion allocated solely to car repayments for this article is capped at R5,000 per month.<\/p>\n\n\n\n

At a prime lending rate of 11% over 60 months with no deposit or balloon payment, this cap equates to a maximum car price of roughly R260,000.<\/p>\n\n\n\n

While 17 new cars remain within reach of this budget, the list is shrinking as vehicle prices continue to climb. <\/p>\n\n\n\n

Exchange rate fluctuations, for instance, have made imported vehicle components significantly more expensive.<\/p>\n\n\n\n

Coupled with supply chain disruptions, manufacturers face higher production costs, which are inevitably passed on to consumers.<\/p>\n\n\n\n

Considering this, there are currently only 17 cars priced under R260,000 in South Africa. These are listed below with pricing and estimated monthly repayment amounts.<\/p>\n\n\n\n

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Toyota Vitz \u2013 starting price R178,800<\/h2>\n\n\n\n