Publications
Partners
In a world where budgeting is more critical than ever, finding the perfect car that matches your salary can be a daunting task.
The latest financial reports indicate that while salaries are on the rise, the cost of living continues to climb as well. If you've been waiting for the right time to purchase a car, you might be in for a reality check.
With the average take-home pay slightly increasing, you'll need to be cautious when considering your car options.
Economic landscape
The latest BankservAfrica Take-Home Pay Index reveals that the average salary is on the upswing, with a nominal take-home pay of R15 673 in September.
This reflects marginal growth compared to August's R15 605 and a significant 4.1% increase from September 2022's R15 056. While this is good news for many, it is essential to spend your hard-earned money wisely, especially when it comes to making a significant purchase, like a car.
Vehicle pricing
The TransUnion Vehicle Pricing Index for new and used vehicles shows a concerning trend. In the second quarter of 2023, new vehicle pricing rose to 6.7%, while used vehicle pricing increased to 9.8%. This is a significant leap from the 3.9% and 8.3% recorded in the same period in 2022.
The used vehicle market is facing particular challenges, with three-year-old vehicles seeing a 17% year-over-year increase in prices. In this context, it is crucial to follow expert advice, like that from AutoTrader, which suggests not spending more than 25% of your income on a vehicle.
This puts the cap on the average salary at a monthly instalment of R4 000.
Affordable vehicle options
1. Suzuki Celerio 1.0 GA Manual - R3 069
- Power: The Celero is equipped with a 1-litre, three-cylinder engine producing 49kW and 89Nm of torque.
- Fuel Economy: It boasts a fuel consumption of 4.4 litres/100km, providing decent mileage during these challenging times of rising petrol prices.
- Safety: While it lacks a Euro NCAP safety rating, it offers two airbags for occupants, two ISOFIX points at the rear and ABS
- Equipment: It provides air conditioning but lacks infotainment features.
2. 2023 Suzuki S-Presso 1.0 GL Manual - R3 192
- Power: Similar to the Celero, it's powered by a 1-litre, three-cylinder engine delivering 49kW and 89Nm.
- Fuel Economy: It's a bit less fuel-efficient, with a claimed consumption of 4.6 litres/100km.
- Safety: Like the Celero, it doesn't have a Euro NCAP rating, but it offers two airbags for front passengers, rear ISOFIX points, and ABS.
- Equipment: It comes with air-conditioning but lacks infotainment.
3. Toyota Vitz (a rebadged Celerio) - Slightly higher monthly instalment, R3 376
- Power, Fuel Economy, Safety, and Equipment: Similar to the Suzuki Celerio.
4. 2023 Suzuki Swift 1.2 GA - R3 744
- Power: The Swift features a more powerful 1.2-litre, four-cylinder engine producing 61kW and 113Nm of torque.
- Fuel Economy: It offers decent fuel efficiency at 4.9 litres/100km, providing better mileage.
- Safety: Unlike the other Suzukis, the Swift has a Euro NCAP rating, with a three-star rating and additional safety features compared to its counterparts.
- Equipment: Like the other Suzuki models, it lacks infotainment, but some units available on AutoTrader might include a radio.
5. Renault Kwid 1.0 Life - R3 675
- Power: The Kwid is equipped with a 1-litre, three-cylinder engine delivering 50kW and 91Nm of torque.
- Fuel Economy: Renault claims it has a fuel consumption of 4.9 litres/100 km.
- Safety: The Kwid has a 1-star safety rating from the Global NCAP, featuring ABS, two airbags, and additional connectivity options.
- Equipment: It comes with a radio as standard equipment, offering USB and Bluetooth connectivity.
The prices reflected are based on Auto Trader's car finance calculator with a 72-month-repayment period and an interest rate of 13.75%.
Important considerations
Keep in mind that your monthly instalment does not cover vehicle maintenance costs, which have also increased. Additionally, it doesn't factor in fuel and insurance expenses.
Make sure to assess your overall budget carefully, including these additional costs. The car market is at a weird stage, and finding an affordable vehicle that matches your budget is more challenging than ever.
With the economic landscape shifting, it's crucial to consider expert recommendations and make informed choices to ensure your vehicle purchase aligns with your financial goals.
