Suzuki has published a guide on how much it costs to buy a car in South Africa based on various salary thresholds.
According to the group, the general rule of thumb is that you should not spend more than a quarter (25%) of your monthly income on vehicle-related expenses.
So, if your monthly income is R20,000, your total vehicle expenses should not exceed R5,000. And this should apply to the entire vehicle cost, including:
According to the group, the most effective method is to use a reputable online calculator. You will need to factor in expenses like education, groceries, loans, credit cards, and entertainment to get an idea of what you can afford.
This will give you a good idea of whether you can afford any vehicle at this time and what price range you should be looking at.
"Once you've completed the above-mentioned calculations, you can begin looking at vehicles in your price range." "Use a vehicle instalment calculator to calculate how much an R250,000 vehicle, for example, will cost you per month to ensure you are looking within the correct range," it said.
"At this point, it's critical to remember point one: you must include your estimated insurance premiums and fuel costs to avoid exceeding your monthly budget."
BusinessTech examined what you can afford to buy on your monthly salary in South Africa, assuming that people will not spend more than 25% of their gross monthly income on vehicle financing.
The calculations were performed using Wesbank's repayments calculator and assume a 0% deposit for car financing. They also do not include any additional fees that may be incurred during the loan's inception in the calculation. Finally, the vehicles are financed for five years (60 months) at a 9% annual interest rate.
These calculations are solely for comparison and are not intended to provide financial advice.
The following is an overview of the cars available in South Africa at each of these price points:
Suzuki S-Presso 1.0 GL – R152,900
R153,900 for the Suzuki Celerio 1.0 GA MT
Renault Kiger 1.0 Life – R199,900
Nissan P200 1.6 8V Base + Safety – R199,900
Toyota Urban Cruiser 1.5 XS auto – R299,200
Haval H2 1.5T 6MT 4×2 City – R294,900
R498,700 for a Toyota Hilux 2.4GD-6 double cab SR.
Hyundai Tucson 2.0 Premium MT – R482,500
Audi A4 Sedan 35 TDI S tronic – R714,000
BMW X3 – R764,000
Audi Q5 Sportback 40TDI quattro S line – R1,000,000
Ford Mustang 5.0 GT Series 10AT Fastback – R1,030,100
Jaguar I-Pace EV400 AWD S Black – R1,999,900
BMW M4 Coupé – R1,957,388
Ferrari Portofino M – R4,956,200
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