{"id":845916,"date":"2025-12-16T16:00:00","date_gmt":"2025-12-16T14:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=845916"},"modified":"2025-12-16T16:09:15","modified_gmt":"2025-12-16T14:09:15","slug":"what-you-need-to-earn-to-buy-the-cheapest-audi-bmw-and-mercedes-in-south-africa-at-the-end-of-2025","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/motoring\/845916\/what-you-need-to-earn-to-buy-the-cheapest-audi-bmw-and-mercedes-in-south-africa-at-the-end-of-2025\/","title":{"rendered":"What you need to earn to buy the cheapest Audi, BMW, and Mercedes in South Africa at the end of 2025"},"content":{"rendered":"\n

Owning a premium German car in South Africa has become a luxury reserved for the country\u2019s top earners.<\/p>\n\n\n\n

As prices soar well above inflation, the affordability of the cheapest models from Audi, BMW, and Mercedes-Benz now requires buyers to be in the upper-income brackets.<\/p>\n\n\n\n

According to the latest TransUnion Mobility Insights Report, the cost of new vehicles rose only slightly in the third quarter of 2025.<\/p>\n\n\n\n

This index, which tracks pricing trends for new and used vehicles from 15 top-volume manufacturers, showed a 1.5% year-on-year increase in new car prices during this period.<\/p>\n\n\n\n

While all vehicle segments experienced price hikes, hatchbacks saw the lowest increase, with a 0.7% rise compared to last year.<\/p>\n\n\n\n

Despite this, over a longer period, hatchbacks\u2014often the entry-level models for luxury brands\u2014have seen the steepest price increases.<\/p>\n\n\n\n

This is evident in the cost of the Audi A1, BMW 1 Series, and Mercedes-Benz A-Class. The Audi A1, currently the most affordable option among the three, is priced at R530,900.<\/p>\n\n\n\n

10 years ago, the same vehicle cost R265,000, which means the price of the model has increased by R265,900 (100%).<\/p>\n\n\n\n

The BMW 1 Series follows at R713,395, while the Mercedes-Benz A-Class tops the list at R813,124.<\/p>\n\n\n\n

These prices reflect price increases of R371,395 (109%) and R423,924 (109%), respectively, compared to 2015. <\/p>\n\n\n\n

These figures highlight how much the landscape of vehicle affordability has shifted, with over 75% of all cars in South Africa now costing more than R500,000.<\/p>\n\n\n\n

Several factors contribute to these rising costs. The weak rand and a sluggish local economy have made it increasingly expensive to import and sell vehicles in South Africa.<\/p>\n\n\n\n

This has had a profound impact on sales for premium brands. Over the past decade, combined sales for Audi, BMW, and Mercedes-Benz have plummeted by 63.5% since 2014.<\/p>\n\n\n\n

At the same time, competitors from other markets, particularly China, have gained traction by offering competitive pricing, advanced technology, and solid build quality, reshaping the market dynamics.<\/p>\n\n\n\n

What you need to earn<\/h2>\n\n\n\n
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The affordability challenge becomes even starker when considering the financial commitment required to own one of these vehicles.<\/p>\n\n\n\n

Using the Audi A1 as an example, financing the car over 60 months at an 11.50% lending rate (prime rate of 10.25% plus 1.25%) with no deposit would result in a monthly instalment of approximately R11,771.<\/p>\n\n\n\n

Financial experts advise that car payments should not exceed 25% of your monthly income. By this standard, you would need to earn at least R47,100 per month to comfortably afford this vehicle.<\/p>\n\n\n\n

To put this into perspective, data from the World Inequality Database indicates that earning R47,100 places you among South Africa\u2019s top 10% of income earners.<\/p>\n\n\n\n

This means 90% of South Africans earn less than this threshold, underscoring the exclusivity of owning even the cheapest models from these premium brands.<\/p>\n\n\n\n

The cheapest Audi, BMW, and Mercedes-Benz are listed below, along with the starting price, estimated monthly instalment, and monthly salary required to afford the vehicle.<\/p>\n\n\n\n

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Audi A1<\/h2>\n\n\n\n