The latest research suggests that South African workers now have several options when it comes to buying a new car in 2023.
According to the findings published by BusinessTech, the South African new-vehicle market continued its gradual recovery in 2022, registering twelve consecutive months of year-on-year growth.
The National Association of Automobile Manufacturers of South Africa’s latest statistics suggest that new-vehicle sales across the passenger, light-commercial, medium-commercial, and heavy truck and bus segments totalled 528,963 units in 2022 – rose by 13.9% when compared to 2021.
Taking a glance at the last month of the previous year, a number of 41,783 new cars were sold – thus 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, announced Naamsa.
Despite these encouraging numbers, new vehicle sales in 2022 are still 1.4% below the 536,612 units sold in 2019.
Dubbed the world’s number one vehicle maker, Toyota anticipates further near-term global supply chain disruptions to the new vehicle market in South Africa.
Per TopAuto, the website reported that Toyota said its outlook for 2023 remains uncertain due to a persistent shortage of semiconductors and spikes in Covid cases in China.
It is worth mentioning that chip and other auto part shortages continue to plague the vehicle sector and the rapid expansion of Covid-19 cases throughout China will present additional difficulties, reported TopAuto.
Naamsa also 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,” it reported.
Looking at the report, industry experts still recommend that prospective buyers shouldn’t spend more than a quarter (25%) of their monthly income on vehicle-related costs.
This means 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 installments
- Insurance premiums
- Fuel costs
BusinessTech Africa also looks at what buyers can afford to purchase based on a monthly wage in South Africa, using the above assumption that people will not spend more than 25% of their gross monthly income on vehicle financing.
Earning between R14,000 – R17,000
Suzuki S-Presso 1.0 GL – R162,900
Mahindra KUV100 Nxt 1.2 G80 – R172,999
Earning R20,000
Suzuki Swift 1.2 GA – R194,900
Toyota Agya 1.0 – R196,100
Between R24,000 – R26,000
Toyota Urban Cruiser 1.5 Xi – R280,400
Volkswagen Polo Vivo hatch 1.6 Comfortline auto – R292,200
Earning R35,000
Haval Jolion 1.5T Premium – R384,950
Between R42,000 – R45,000
Audi A1 Sportback 30TFSI S line – R489,800
Between R62,000 – R65,000
Alfa Romeo Tonale 1.5T Hybrid Ti – R739,900
Between R83,000 – R85,000
Ford Ranger 3.0 V6 double cab Wildtrak 4WD – R953,500
