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South Africa’s new-vehicle market continued its gradual recovery in 2022, with twelve consecutive months of year-on-year growth.
According to the National Association of Automobile Manufacturers of South Africa (Naamsa), new-vehicle sales across the passenger, light-commercial, medium-commercial, and heavy truck and bus segments totalled 528,963 units in 2022 – rising by 13.9% when compared to 2021.
In the last month of 2022, 41,783 new vehicles were sold – recording an increase of 5,839 vehicles or a gain of 16,2% compared to the total of new vehicle sales of 35,944 units during the corresponding month of December 2021, said Naamsa.
However, despite these positive numbers, new vehicle sales in 2022 are still 1.4% below the 536,612 units sold in 2019. Naamsa and the world’s No.1 automaker Toyota expect further near-term global supply chain disruptions to the new vehicle market in South Africa.
TopAuto reported that Toyota said its outlook for 2023 remains uncertain due to a persistent shortage of semiconductors and spikes in Covid cases in China.
Chip and other auto part shortages continue to plague the industry, and the rapid expansion of Covid cases throughout China will present additional difficulties, reported TopAuto.
Naamsa added that just as pandemic-induced disruptions seemed to subside in early 2022, the Russian invasion of Ukraine dealt a further blow to business and consumer confidence globally and in South Africa.
“The geopolitical conflict in Ukraine resulted in further supply chain disruptions and have inflated prices and the availability of strategic products and inputs.”
In 2023, motorists will grapple with increasingly more expensive cars due to these national and international headwinds.
Industry experts still recommend that prospective buyers shouldn’t spend more than a quarter (25%) of their monthly income on vehicle-related costs. So, if you earn R20,000 per month, your total vehicle expenses should not exceed R5,000. And this should apply to the whole vehicle expense, including:
- Vehicle instalments
- Insurance premiums
- Fuel costs
Below, BusinessTech looked at what you can afford to buy on your monthly salary in South Africa, using the above assumption that people will not spend more than 25% of their gross monthly income on vehicle financing.
The calculations were made using Wesbank’s repayments calculator and include the assumption of a 0% deposit for car financing. They also exclude any additional fees incurred during the loan’s inception into the calculation.
Finally, the cars are financed over five years (60 months) at an annual interest rate of 10.5%. This follows a recent interest rate hike by the South African Reserve Bank in November, taking the prime rate from 9.75% to 10.5%.
These calculations are purely for comparison purposes and are not meant as financial advice.
Price of car | Monthly repayment | Minimum gross monthly salary required |
---|---|---|
R150 000 | R3 319 | R13 276 |
R200 000 | R4 394 | R17 574 |
R300 000 | R6 543 | R26 172 |
R500 000 | R10 842 | R43 367 |
R750 000 | R16 215 | R64 861 |
R1 000 000 | R21 589 | R86 355 |
R2 000 000 | R43 083 | R172 331 |
R5 000 000 | R107 564 | R430 257 |
Below is an overview of the new cars you can currently buy in South Africa at each of these price points:
Earning between R14,000 – R17,000
Suzuki S-Presso 1.0 GL – R162,900
Mahindra KUV100 Nxt 1.2 G80 – R172,999
Renault Kwid 1.0 Life – R180,999
Earning R20,000
Suzuki Swift 1.2 GA – R194,900
Toyota Agya 1.0 – R196,100
Kia Picanto 1.0 Start – R209,995
Renault Kiger 1.0 Life – R219,999
Toyota Starlet 1.5 Xi – R226,200
Between R24,000 – R26,000
Toyota Urban Cruiser 1.5 Xi – R280,400
Volkswagen Polo Vivo hatch 1.6 Comfortline auto – R292,200
Nissan Magnite 1.0 Turbo Acenta – R296,500
Mahindra XUV300 1.5TD W6 – R297,999
Chery Tiggo 4 Pro 1.5 Urban – R299,900
Hyundai Venue 1.2 Motion – R299,900
Earning R35,000
Haval Jolion 1.5T Premium – R384,950
Volkswagen T-Cross 1.0TSI 70kW Comfortline – R387,600
Volkswagen Polo hatch 1.0TSI 85kW Life – R391,400
BAIC Beijing X55 1.5T Dynamic – R394,900
Mahindra Pik Up 2.2CRDe double cab S6 Karoo – R397,999
Suzuki Jimny 1.5 GLX AllGrip auto – R399,900
Between R42,000 – R45,000
Audi A1 Sportback 30TFSI S line – R489,800
Toyota Corolla hatch 1.8 Hybrid XS – R490,900
Kia Seltos 1.5CRDi EX+ – R493,995
Isuzu D-Max 1.9TD Extended cab LS manual – R494,000
Jeep Renegade 1.4T Longitude – R499,900
Between R62,000 – R65,000
Alfa Romeo Tonale 1.5T Hybrid Ti – R739,900
BMW X2 sDrive18i M Sport – R747,286
Volvo XC40 B3 Ultimate Dark – R751,400
Mercedes-Benz A200 sedan AMG Line – R759,358
Between R83,000 – R85,000
Ford Ranger 3.0 V6 double cab Wildtrak 4WD – R953,500
Ford Everest 2.0 BiTurbo 4×4 Sport – R965,400
Mercedes-Benz GLB220d 4Matic Progressive – R998,388
Volvo XC60 B5 AWD Plus Dark – R999,700
Volkswagen Tiguan R – R999,900
BMW X3 sDrive18d M Sport – R1,055,778
Upwards of R100,000
BMW M440i xDrive Gran Coupe – R1,413,966
Jaguar E-Pace P300e AWD R-Dynamic SE – R1,478,000
Land Rover Defender 90 D300 X-Dynamic SE – R1,494,600
Toyota Land Cruiser 300 3.5T GR-Sport – R1,936,200
Porsche 911 Carrera 4 coupe – R1,979,000
Maserati Quattroporte – R2,850,200
Bentley Continental – R4,590,600
Ferrari Roma – R5,094,200