Table of Contents
- 1 How many months salary should you spend on a car?
- 2 How much should I earn to afford a car in South Africa?
- 3 What’s the cheapest car in South Africa?
- 4 Are new cars a good investment?
- 5 What percentage of your salary should you spend on a car?
- 6 What is the average cost of a new car in the UK?
- 7 How much car can you afford to buy?
How many months salary should you spend on a car?
We recommend a maximum of 10\% of your take-home pay. We recommend a maximum of 36 months for used cars and 60 months for new cars. Your estimated APR is based on the average rate for the credit range you fall in.
How much should I earn to afford a car in South Africa?
What’s your budget? Banks in South Africa generally recommend that you don’t spend more than 30\% of your annual gross salary on a car, and that your monthly costs should be no more than 10\%. Other recommendations put the benchmark at 25\%.
Which car is the cheapest in South Africa?
Lowest rand value of service parts basket per category
Category | Car | Cost |
---|---|---|
Budget vehicles | Ford Figo 1.5 Titanium | R3,347.78 |
Compact Family vehicles | Peugeot 1.2 Active | R6,011.94 |
Family SUVs | Toyota Rav 4 | R6,183.32 |
Executive SUVs | Alfa Romeo Stelvio | R9,538.53 |
What’s the cheapest car in South Africa?
Are new cars a good investment?
Your car may be considered an asset because you can sell it for a large amount of money. But your car is not an investment. It depreciates over time. In the first year, most cars depreciate in value at least $1,500.
What can I afford with a 100k salary?
One rule of thumb involves dividing your pretax earnings by 40. This means that if you make $100,000 a year, you should be able to afford $2,500 per month in rent. Another rule of thumb is the 30\% rule. If you take 30\% of $100,000, you will get $30,000.
What percentage of your salary should you spend on a car?
This rule may only work if you need a car to literally get from Point A to Point B. The 36\% Rule: With this rule, your total loan payments shouldn’t take up more than 36\% of your salary. This includes your mortgage, car loan, personal loans, student loans, and minimum credit card payments.
What is the average cost of a new car in the UK?
Using the average UK salary of £26,000 per year, this gives you about £6,500 to spend on a new car. Around this budget, you’ll be able to afford some small city cars such as the Suzuki Alto or the Kia Picanto, both of which are available for under £8,000.
How much should you spend on your next new car?
Read on to work out how much you should spend on your next new car. If you view a car as more of a functional tool than a lifestyle item or a status symbol, it’s best to budget about 10 to 15 per cent of your annual income. Using the average UK salary of £26,000 this gives you a budget of £3,900 to spend on a car.
How much car can you afford to buy?
“How much car you can afford?” is a different question than “How much you should spend on a new car?” A loan officer will look at your income and credit report and say: “You can afford $650 a month.” You could finance a new Porsche for $650 a month if they stretch the loan out long enough, but you certainly shouldn’t spend that much on a car.