BUSINESS

All the cars you can buy for under R240,000 in South Africa at the start of 2024

Published

4 months ago

January 15, 2024

There are only a handful of new cars that you can get for under R240,000 in 2024, and most of them are hatchback models ranging from the R174,000 Suzuki S-Presso to the R234,500 Hyundai Grand i10.

Hatchbacks are generally priced lower than other car types but offer similar features and performance, which makes sense as to why this list features mostly this type of body shape.

In addition to being affordable, hatchbacks are well-suited for narrow and congested roads. Their compact size makes them easy to manoeuvre in traffic and park in tight spaces, making them a practical choice for those living and working in urban areas.

However, despite being an entry-level body type, the cost of owning a car is becoming increasingly unaffordable – even for hatchbacks.

According to TransUnion’s latest Vehicle Pricing Index (VPI), the price of new vehicles, on average, increased by 6.7% alone in 2023 – with hatchbacks seeing the steepest increases at 7.4%.

As of November 2023, there are only four hatchbacks priced under R200,000 in South Africa – The Suzuki S-Presso, Suzuki Celerio, Toyota Vitz, and the Renault Kwid.

Additionally, those who earn the average salary in South Africa can’t even afford every car listed below.

According to the latest quarterly employment survey (QES) published by Stats SA, the average salary in South Africa saw a negligible increase of 0.9% from the previous quarter to R26,087 from R25,866 per month.

Financing experts recommend spending no more than 25% of monthly income on vehicle-related expenses. For example, those earning R26,087 per month should spend no more than R6,522 on such expenses.

This assumes the cars are financed over five years (60 months) at an annual interest rate of 11.75%, with a 0% deposit or balloon payment.

However, the experts noted that vehicle-related costs include:

vehicle instalments
Insurance premiums
Fuel costs

Therefore, we capped the monthly repayment on the price of the vehicle alone at R5,000, meaning the average income earner can afford a car priced up to R222,000.

An interesting comparison is also between the Toyota Starlet and the Suzuki Baleno, which were released in the same timeframe, are similarly priced, and have identical drivetrains. This is the same for the Suzuki Celerio and Toyota’s Vitz.

The 13 cars priced under R240,000 in South Africa right now are listed below.

Suzuki S-Presso