Only 4 Cars Options for Average Earners in South Africa

Nominal Take-home Pay Growth

Only 4 Cars Options for Average Earners : The recent BankservAfrica Take-home Pay Index (BTPI) for September showcased a marginal increase in nominal take-home pay, hitting R15,673, up from R15,605 in August. This marks a 4.1% surge compared to R15,056 in September 2022, hinting at potential salary improvements in 2023.

Independent Economist Elize Kruger highlighted that private sectors have gained resilience against challenges like load shedding, indicating better prospects for remuneration and employment.

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Impact on Car Affordability

However, soaring new car prices pose a predicament for those earning the average salary. The TransUnion Vehicle Pricing Index (VPI) shows a 6.7% rise in new vehicle costs in 2023. This increase isn’t the sole expense; it’s essential to factor in fuel, insurance, and maintenance, contributing significantly to overall ownership costs.

According to WesBank, the total cost of car ownership spiked by 14% since November 2022 and has surged by a substantial 50.6% over the last three years, creating a challenging scenario for average earners.

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Financial Constraints

Guidelines recommend that individuals allocate no more than 25% of their gross income towards a vehicle. With an average monthly take-home of R15,673, this limits an affordable vehicle cost to R192,000. Consequently, only four car models currently fall within this budget range in South Africa:

Only 4 Cars Options for Average Earners

1. Suzuki S-Presso

• Starting price: R169,900
• Estimated monthly repayment: R3,854
• To buy this car Contact GSY at 082 540 6261

2. Suzuki Celerio

• Starting price: R183,900
• Estimated monthly repayment: R4,163
• To buy this car Contact GSY at 082 540 6261

3. Renault Kwid

• Starting price: R184,999
• Estimated monthly repayment: R4,188
• To buy this car Contact GSY at 082 540 6261

4. Toyota Vitz

• Starting price: R189,900
• Estimated monthly repayment: R4,296
• To buy this car Contact GSY at 082 540 6261

With limited car options within the affordable range, average earners in South Africa face a restricted choice when looking to purchase a new vehicle.