Cars you can buy with the average South African salary

Cars you can buy with the average South African salary

The average gross take-home pay in South Africa in October 2021 was R15,042, which is a 3.1% decline when compared to the same time last year. This is according to data from BankservAfrica – as reported on by BusinessTech.

Financial experts recommend that car buyers and owners do not spend more than 20% of their gross salary – their salary before deductions – on a car payment.

Taking the average local salary into account, this gives South Africans a car budget R3,008 per month when using a vehicle finance plan.

To calculate the vehicle you can afford on this monthly instalment, we can use the formula below:

  • Monthly instalment – R3,008
  • Payment Term – 60 terms (5 years)
  • Interest – 9%
  • Deposit – 10%
  • Balloon – No balloon payment
  • Extras – No optional extras

This works out to a vehicle buying price of R156,000.

Unfortunately, if you’re looking to buy a new car, this budget leaves very little room for choice – as there are only three new vehicles that can be bought at this price in South Africa.

While the second-hand segment can present a few bargains, it has also experienced a rise in prices over the last 18 months.

We take a look at what can be had in both these markets for a monthly instalment of under R3,008.

Suzuki S-Presso 1.0 GL

  • Price – R152,900
  • Power – 50kW/90Nm
  • Warranty – 5-year/200,000km warranty and a 2-year/30,000km service plan.

Suzuki Celerio 1.0 GA

  • Price – R153,900
  • Power – 50kW/90Nm
  • Warranty – 5-year/200,000km warranty and a model-dependent 2-year/30,000km service plan.

2019 Kia Picanto 1.0 Start

  • Price – R154,995
  • Power – 49kW/95Nm
  • Mileage – 31,200km

Bennie Oosthuizen – Penta Motor Group

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