South Africans cannot afford the country’s cheapest car

At R178,900, the Suzuki S-Presso is the cheapest new car on sale today in South Africa, but the majority of South Africans cannot afford this, or any, car.

According to Cars.co.za and TransUnion, even the prices of affordable cars are increasing drastically. The cheapest car today costs nearly double what the entry-level Chery QQ3 did in 2015, at R93,900. Even accounting for inflation, new entry-level cars have become more expensive in real terms.

Financed over a 72-month period at the prime lending rate, with no deposit and no balloon payment, South Africans would be paying around R3,360 to finance the Suzuki S-Presso.

This excludes all of the other costs associated with owning and operating a vehicle, such as fuel, insurance and maintenance, which could add thousands to someone’s monthly car bill.

Cars.co.za recommended that buyers need a minimum net salary of R21,900 per month to finance a base-level car on standard terms. However, South Africa’s average net salary is just R18,000.

Stats SA’s latest Income & Expenditure Survey paints an even bleaker picture. According to the survey, South African households had a median annual income of R95,770 in 2022/23.

This means that half of all households in South Africa had an income of less than R7,980 per month. Given this, buying any car is completely out of the question for most South Africans.

As a result of this, as well as stricter lending controls by banks, Cars.co.za said new, first-time vehicle finance agreements have steadily declined.

South Africans who buy cars are also looking for affordability, leading to the increasing popularity of balloon payments and longer-term financing. This has also opened the market for cheaper, East-Asian brands.

East-Asian cars dominate

In 2015, Chinese brands’ vehicles made up just 0.76% of Cars.co.za stock. In 2025, they commanded 6.45%, a staggering 749% increase.

New entrants such as Chery, Haval, Omoda, Jaecoo, and Jetour have captured market share at unprecedented speed, often leapfrogging established brands.

Cars.co.za said aggressive pricing, generous specifications, and sharp marketing have made Chinese brands’ models especially competitive in the compact crossover segment, where consumers are spoilt for choice.

Perhaps contrary to expectations, most Chinese brands’ vehicles achieve solid residuals that compare well with rival legacy brands.

There are currently 12 Chinese vehicle brands available in South Africa. By July 2024, they accounted for 9% of all passenger and light commercial vehicles sold locally, which has likely grown since then.

Haval’s sales, in particular, have skyrocketed, with 19,904 units sold in 2024, a 2,000% increase since 2019.

Other affordable East Asian car brands, such as the Japanese Suzuki, have also quickly become a South African favourite.

In the first quarter of 2025, the Suzuki Swift was South Africa’s best-selling new passenger vehicle, with local registrations of the Indian-built hatchback surging 42.4% year on year to 6,587 units.

The Suzuki Fronx also cracked the top 10, coming in at ninth place with 2,946 units registered, an impressive 158%.

The Hyundai Grand i10, the Chery Tiggo 4 Pro, the Haval Jolion, and the Nissan Magnite were also among the country’s top ten-selling cars.

The Swift also performs well in the second-hand car market. It was the fifth best-selling car in August 2025, with an average price of R200,189.

More affordably priced was the Hyundai Grand i10, which was the ninth best-selling car in August 2025. It sold 529 units for an average price of R191,146.