New car sales in South Africa followed the same trend as last year, with August being the second best month in terms of sales.
Auto finance firm Wesbank said the year-on-year comparison appeared to show consistency, indicating a return of some stability to the domestic car market.
According to the South African Automobile Manufacturers Association (Naamsa), there were 47,420 new vehicle registrations in August.
WesBank’s Head of Marketing and Communications, Lebogang Gaoaketse, said:
“Last year, August was our second-best-selling month at the time, and March 2021 was our best-selling month. did.”
If that can be defined as a trend, the market outlook for the rest of the year could be even more promising. Sales in August 2021 were eclipsed by sales in September and November last year, he said, Wesbank.
More people are likely to buy cars this year, despite the inevitable further rise in interest rates.
“Loan applications continue to show strong demand for vehicle upgrades, and WesBank’s books show strong double-digit growth in new vehicle applications,” Gaoketse said.
Kutlwano Mogatusi, a retail communications specialist at WesBank, says as a rule of thumb when considering a new car purchase: You should not spend more than 20% of your gross income on car repayments.
Mogatusi says that if you are making responsibly buying choices because they are what you can afford rather than what you want, you are making the best choices in your life.
“In addition to keeping up with all other financial commitments to maintain a good credit history, budget for other costs associated with owning a vehicle, such as fuel, insurance, maintenance and service costs. It’s also important,” said the lender.
here is what you can afford
BusinessTech looked at what people could buy with their monthly salary, based on the assumption that people don’t spend more than 25% of their monthly gross income on car loans.
The following calculations were completed using the Wesbank Repayment Calculator and include the assumption of 0% security deposit for car loans. Any additional charges that may occur at the beginning of the loan are excluded from the calculation.
For these calculations, the car is financed at an annual interest rate of 9% for 5 years (60 months).
These calculations are purely for comparison purposes and are not intended as financial advice.
|car price||monthly repayment||Gross monthly salary required|
|R150 000||R3 208||R12 831|
|R200 000||R4 246||R16 982|
|R300 000||R6 322||R25 286|
|R500 000||R10 473||R41 892|
|R750 000||R15 663||R62 651|
|R1 000 000||R20 852||R83 409|
|R2 000 000||R41 611||R166 443|
|R5 000 000||R103 886||R415 543|
Below is a list of cars currently available for purchase in South Africa at each price point specified.
R16,000 ~ R25,000 per month:
Suzuki S-presso – R156,900
Kia Picant X Line – R198,995
Mahindra XUV300 – R234,999
toyota urban cruiser – R274,900
Hyundai Grand i20 – R290,900
while R25,000 – R42,000 per month
ford ecosport – R311,400
Volkswagen T-Cross – R368,900
Volkswagen Tigo – R429,900
R42,000～R83,500 per month
Mazda CX-5 – R515,400
Honda HR-V Executive CVT – R554,500
BMW 2 Series Gran Coupe – R665,000
VW Amarok – R764,500
About R83,500 or more per month
BMW X3 – R932,500
Audi RS3 Sportback – R1,215,000
Eaton GT Quattro – R2,715,000
mercedes EQS – R2,615,100