These are all the cars you can get for under R390,000 in South Africa right now

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Prices for new vehicles are outstripping inflation, and the average amount South Africans are financing for their cars has increased by over 5% in just one year.

According to TransUnion’s latest Vehicle Pricing Index (VPI), the price of new vehicles, on average, increased by 6.7% in Q2 2023.

Although this is already slightly above inflation (CPI), TransUnion noted that this is forecasted to increase further in the upcoming months.

Five vehicle body types exceeded CPI. On average, the price of all body types increased over the period; however, medium SUVs and hatchbacks saw the steepest increases at 7.4% in Q2 2023 compared to Q2 2022. Other YoY price increases included: Small SUVs (6.8%), premium and hybrids (6.6%), Crossovers (6.4%), and Electric (3.1%).

According to the report, the percentage of cars – both new and used – being financed below R200,000 declined to 19% in Q2 2023 from 21% in Q2 2022, likely due to the increased average purchase price of new vehicles, leaving little choice for prospective buyers in this price band.

The under R200,000 band is the lowest it has been since TransUnion started the VPI in 2011.

The data further found that 28% of vehicle financing deals were for cars between R200,000 and R300,000, and 53% shopped for cars over R300,000. The report noted that this is a result of rising vehicle prices, with consumers forced to spend more for a reliable vehicle, while those in the used vehicle market moved to older cars to meet their needs.

“The average loan size for Q2 2023 increased from R370,000 to R390,000 YoY, reflecting shifts in both new and used vehicle pricing and changes in buying preferences. In the search for value, consumers have turned to SUVs — which make up more than 30% of new and used financed vehicles.

Considering these recent findings, BusinessTech looked at cars you can buy right now in South Africa for around the price point of R390,000.

Because not many cars are priced at R390,000 exactly, and to make this article more comprehensive, the list below includes cars priced between R380,000 and R400,000.

Regarding the financing implications of these cars, prospective buyers in this range are looking at monthly instalment amounts of between R8,500 and R9,000. This assumes no deposit, a five-year (60-month) contract, and an interest rate of 11.75% (the current prime lending rate).

Considering finance experts recommend no more than 25% of an individual’s net monthly salary should be spent on vehicle-related costs, buyers who can comfortably afford these cars should be earning roughly between R34,000 and R36,000 per month.

At the specified price range, there are 18 vehicles that can be bought new. These cars are listed below.

Note: Some of the models listed have cheaper variants in their available line-ups; however, we chose the best version that fits in the price range.

Honda Ballade 1.5 Comfort – R380,500