What is the minimum salary to buy a car in South Africa? You will need a valid copy of your Identity Document / Passport. MINIMUM NET SALARY OF R6500 You must be a paid employee with a minimum monthly net income of at least R6500, an obligatory requirement for qualifying for vehicle finance with most major banks. PROOF OF INCOME You will need to provide the bank with three months’ payslips and six months’ bank statements for self-employed customers. Subsequently, our Financial and Insurance Manager (F&I) will assess your affordability once the documents are verified. PROOF OF ADDRESS You will need to provide valid proof of residence (not older than three months) in the form of a municipality letter, utility bill or any document that reflects your details and current address. Alternatively, you can use a copy of your rental or lease agreement. VALID DRIVERS LICENCE Financial institutions require customers to have insurance in any vehicle purchased through vehicle finance for the entire financing period. The cover guarantees they will get their money back, assuming anything happens to the vehicle.Owning a new car can be an enticing prospect, especially for South Africa’s working-class groups. However, the high cost of new cars, coupled with financial constraints, poses challenges. This article explores practical strategies to make new car ownership more affordable for many South Africans. Our F&I will always try to the best of his ability to assist you with the finance you need to purchase your vehicle. It is vital to listen to your F&I as they advise you on the best options to consider in terms of monthly repayments, interest rates, finance term length, balloon payments and even deposits. Responsible Spending Prioritizing expenses is essential. It is advisable to limit car repayments to a maximum of 20% of your nett salary (after taxes). By allocating a reasonable portion of your income to car payments, you can ensure that other crucial expenses, such as rent, medical aid, and daily living costs, are also covered. When financing a car, comprehensive insurance is mandatory. It safeguards both the bank’s investment and the owner’s interests. It is crucial to include insurance costs within the 20% allocated for car payments. Typically, young drivers and first-time car owners can expect insurance expenses of around R1000 per month. Utilizing Finance Tools AutoTrader offers a useful finance calculator that can assist in estimating monthly costs for specific cars. By entering details such as the vehicle price, desired deposit amount, interest rate, and repayment duration, you can obtain a clearer understanding of your monthly financial obligations. This tool can help inform your decision-making process and identify cars that fit within your budget. Exploring Affordable Options AutoTrader’s search function enables you to browse for the most affordable car options. By selecting the “Estimate Repayment” feature, you can filter vehicles based on your affordability criteria. This allows you to focus on cars that align with your budgetary limitations and financial goals. Conclusion Affordable new car ownership is within reach for many South Africans. By adopting responsible spending practices, factoring in insurance costs, and utilizing helpful tools like AutoTrader’s finance calculator, you can make informed decisions that align with your personal financial capabilities. Finding a new car that suits both your needs and your budget is possible with careful consideration and planning.