The prices of new cars have increased substantially in South Africa, and those wanting to finance the cheapest models from Audi, BMW, or Mercedes-Benz will have to be among the top 7% of the country’s income earners.
According to the report, the price of new vehicles, on average, increased by 6.7% in Q2 2023 – beating inflation by 1.3%, which was recorded at 5.4% in June 2023. Unsurprisingly, the cheapest cars from some of the most popular luxury brands are hatchbacks, which saw the steepest price increases year-on-year.
Assuming a payment term of 60 months , at a lending rate of 11.75% and a 0% deposit, the monthly instalment amount of the Audi A1 is roughly R10,765.
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