Automotive Tips & Advice

Auto Mart is the most affordable and biggest online buy-and-sell automotive marketplace in South Africa. With over 95 000 vehicles to choose from, there is simply no other portal that offers the same amount of stock to a captive online audience.


How Much Can I Afford To Pay On A Car? | Auto Mart


Our automotive listings marketplace allows Buyers, Sellers, and Traders to shop, market, and promote their automotive-related businesses and products to over a million monthly visitors. We are also the most cost-effective automotive marketplace and believe every car owner has the right to trade up or down.


With more cars for sale on our website than any other platform in South Africa, Auto Mart is a key resource for car buyers looking for vehicles that fall into the under R300 000 bracket.


What to consider when buying a car?

Most people buy a car based on feelings. ‘How does this car make me feel? Do I look good in this car? Does it suit my lifestyle?’ When purchasing a vehicle, one needs to try and think past these emotions and consider the following key car buying factors:

  • What needs is the car going to fulfil? Do you need a car to transport children or do you need one to run your business?
  • Will the car suit your lifestyle demands?
  • Research similar cars to try and understand what your resale value might be.
  • What is the actual cost of ownership going to be when you include insurance, petrol, and general maintenance costs?
  • What will a new set of tyres cost you?
  • Do you require or desire added features?
  • What kind of incentive and trade-in options will the seller offer you?
  • What is the vehicle pricing and cost of finance?

How Much Can I Afford To Pay On A Car? | Auto Mart


How much should I spend on a vehicle?

There are many theories out there about how much one should spend on a vehicle. The most common theory is that a car buyer should not spend more than 20% of their gross salary on the purchase of a new or used vehicle.


What will a R350 000 car cost me monthly? (R0 deposit at a 13% interest rate)

To purchase a vehicle that’s going to cost you R350 000, your monthly repayments will average around R7 000 per month. This means that you would need to earn around R35 000 per month to afford the car (based on the 20% of gross salary rule). Once you’ve paid tax on your monthly earnings, you will probably be left with around R21 000 after you’ve made your car payment.


What will a R300 000 car cost me monthly? (R0 deposit at a 13% interest rate)

To purchase a vehicle that’s going to cost you R300 000, your monthly repayments will average around R6 100 per month. This means that you would need to earn around R30 000 per month to afford the car (based on the 20% of gross salary rule). Once you’ve paid tax on your monthly earnings, you will probably be left with around R18 000 after you’ve made your car payment.


What will a R250 000 car cost me monthly? (R0 deposit at a 13% interest rate)

To purchase a vehicle that’s going to cost you R250 000, your monthly repayments will average around R5 100 per month. This means that you would need to earn around R25 000 per month to afford the car (based on the 20% of gross salary rule). Once you’ve paid tax on your monthly earnings, you will probably be left with around R16 000 after you’ve made your car payment.


How Much Can I Afford To Pay On A Car? | Auto Mart


What will a R200 000 car cost me monthly? (R0 deposit at a 13% interest rate)

To purchase a vehicle that’s going to cost you R200 000, your monthly repayments will average around R4100 per month. This means that you would need to earn around R20 000 per month to afford the car (based on the 20% of gross salary rule). Once you’ve paid tax on your monthly earnings, you will probably be left with around R13 500 after you’ve made your car payment.


What will a R150 000 car cost me monthly? (R0 deposit at a 13% interest rate)

To purchase a vehicle that’s going to cost you R150 000, your monthly repayments will average around R3 100 per month. This means that you would need to earn around R15 500 per month to afford the car (based on the 20% of gross salary rule). Once you’ve paid tax on your monthly earnings, you will probably be left with around R9 500 after you’ve made your car payment.


What will a R100 000 car cost me monthly? (R0 deposit at a 13% interest rate)

To purchase a vehicle that’s going to cost you R100 000, your monthly repayments will average around R2 100 per month. This means that you would need to earn around R10 500 per month to afford the car (based on the 20% of gross salary rule). Once you’ve paid tax on your monthly earnings, you will probably be left with around R7 500 after you’ve made your car payment.


What will a R50 000 car cost me monthly? (R0 deposit at a 13% interest rate)

To purchase a vehicle that’s going to cost you R50 000, your monthly repayments will average around R1100 per month. This means that you would need to earn around R5 000 per month to afford the car (based on the 20% of gross salary rule). Once you’ve paid tax on your monthly earnings, you will probably be left with around R3 800 after you’ve made your car payment.


Note: The calculations are to be used as a guide only.


So make sure you are prepared when purchasing a vehicle and ensure that you have run your numbers and are well informed about the type of vehicle you want to purchase.


Find thousands of cars for sale on Auto Mart under R300K.

You may also like

Categories:

Common category
Cars

Latest articles:

How much should I spend on my first car? | Auto Mart

Auto Mart: The Most Affordable & Largest Online Car Marketplace In SA!

Which types of cars will I find on Auto Mart?