What car can you afford?
From your take-home pay to a sensible price ceiling, plus the cars in that budget that will still be worth something later.
after tax and deductions
The 20 to 30 percent band covers the instalment only. Fuel, insurance and maintenance typically add half the instalment again, so leave room.
Cars inside your budget that hold their value
Sorted by three-year value retention, because a car that holds value is the cheapest car you can buy at any budget.
On R 25 000 take-home, a balanced 25% of income means a R 6 250 ceiling instalment, which finances a car of about R 351 826 on your terms. Banks look at gross income and existing debt, so approval amounts may differ from what is comfortable.
Do something with this
The affordability maths, honestly
Dealers and banks answer a different question to the one you are asking. They ask “what can we approve?” while you should ask “what can I carry without wincing?”. The 25 percent rule exists because a car is never just the instalment: comprehensive insurance on a financed car is mandatory, fuel scales with your commute, and tyres and services arrive whether you budgeted or not.
The suggestions above are ranked by value retention on purpose. Two cars with the same instalment can differ by R50 000 in what they are worth in three years, and that difference is your deposit on the next car. Affordability is not only what you pay in; it is what you get back out.
Common questions
How much of my salary should go to a car?
The common guideline is 20 to 30 percent of take-home pay for the instalment, and that is before fuel, insurance and maintenance, which often add half the instalment again. At 25 percent of a R25 000 take-home, that is a R6 250 ceiling instalment.
What do banks actually look at?
Banks work off gross income, existing debt and your credit record, and must check affordability under the National Credit Act. They may approve more than is comfortable. The number that matters is the one that leaves your month intact, not the approval ceiling.
Should I buy new or used on a tight budget?
Used usually wins below R250 000. A three-year-old car from a value-holding brand has already absorbed its steepest depreciation, and our year value pages show what specific used years are worth.