In today’s fast-paced world, it is essential to adapt and remain mobile to effectively attend meetings and keep appointments. Investing in a fuel-efficient and reliable car is often the best solution.
However, it is equally important to choose a vehicle that fits comfortably within your budget for monthly instalments. In this article, we will outline the options available for those earning a salary of R15,000.
When it comes to purchasing a vehicle, there are three factors that together, determine the vehicle you can afford. These are your salary, credit score as well as the cost of the vehicle.
The higher your credit score, the lower your interest rate which means that you might then have a good chance of paying lower on installments.
The reputable auto motor dealership, Auto Trader states, “It has been said that you shouldn’t spend more than 20% of your net salary on a monthly vehicle repayment. Not only because it is a good rule of thumb, but in many cases, a bank or money lender won’t approve your vehicle finance application if this ratio is any larger than that.”
To better understand this concept the above-mentioned publication has created a table to explain what you can afford based on your net salary.
Example:
| Monthly Salary | Monthly Installment | Vehicle Price |
| R10 000 | R2 000 | Less than R100 000 |
| R20 000 | R4 000 | Less than R200 000 |
| R30 000 | R6 000 | Less than R300 000 |
This means that a salary of R15 000 could put you in contention for getting a car between the price range of R150 000 – R200 000 depending on your credit score.
Currently, there are several economically friendly vehicles that suit the mould.
Here are a few to choose from:
Suzuki Swift
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Suzuki S-Presso 1.0 GL
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Hyundai Grand i10
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Renault Kwid
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Toyota Vitz
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Meanwhile, there are various other expenses that might influence your affordability, some of which include monthly expenses, insurance, as well as the cost of fuel.
Also see: Get a close glimpse into the new KIA EV4
