Can the average person actually afford a new, luxury car?

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notinterested

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My car is getting a bit old now and I'm looking at getting something new, but the prices are freaking crazy! The only reasoon that I'm looking at something in the more expensive side of things is because I want something with decent performance that won't be boring to drive and also has as many modern safety and driver assistance features as possible.

How the hell does anyone actually afford anything more than 300k without having a few hundred grand lying around?

I decided to work out what my payments would be like using the following:
Price - 500k
deposit - 10%
60 months
no balloon
Interest rate - 10% [I got prime with my previous car, so I'm assuming I'll get the same again].

The payments for the above work out to R9655!! Well over 10k a month once you add insurance.

It blows my mind that people are buying brand new mercs/BMWs, etc these days. I can only assume that people are living in permanent debt with balloons and constant trade-ins, there's just no way that the average South African can afford a new car that isn't a boring econo-box without having to pay out their asses.

Has anyone bought a new vehicle recently? How did you do it and would you like a new friend?
 
notinterested said:
My car is getting a bit old now and I'm looking at getting something new, but the prices are freaking crazy! The only reasoon that I'm looking at something in the more expensive side of things is because I want something with decent performance that won't be boring to drive and also has as many modern safety and driver assistance features as possible.

How the hell does anyone actually afford anything more than 300k without having a few hundred grand lying around?

I decided to work out what my payments would be like using the following:
Price - 500k
deposit - 10%
60 months
no balloon
Interest rate - 10% [I got prime with my previous car, so I'm assuming I'll get the same again].

The payments for the above work out to R9655!! Well over 10k a month once you add insurance.

It blows my mind that people are buying brand new mercs/BMWs, etc these days. I can only assume that people are living in permanent debt with balloons and constant trade-ins, there's just no way that the average South African can afford a new car that isn't a boring econo-box without having to pay out their asses.

Has anyone bought a new vehicle recently? How did you do it and would you like a new friend?
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People do it either through crazy debt or with good salaries. The new Polo GTI looks alright. Have a look at that.
Car prices are absolutely bonkers though.
I honestly think you have to be a blithering idiot to buy my car right now and it's not even very special. I earn seven figures but couldn't justify a Golf R for example.
 
Well most people who own these cars really can't afford it, if it wasn't for their woolies card they would go hungry certain months
 
New, Luxury and R500k? What car is this?

2.8 base Hilux DC starts at R500k. For a Hilux?! That's not even a 4x4 model... Closer to R700k for the 4.0 Dakar Hilux.

And that's not luxury, that's just your typical Hilux. Not a Fortuner, a Prado, or Land Cruiser.. Just a simple Toyota Hilux.

New car prices are crazy these days and most certainly unaffordable for the average person.
 
Kayoss said:
New, Luxury and R500k? What car is this?

2.8 base Hilux DC starts at R500k. For a Hilux?! That's not even a 4x4 model... Closer to R700k for the 4.0 Dakar Hilux.

And that's not luxury, that's just your typical Hilux. Not a Fortuner, a Prado, or Land Cruiser.. Just a simple Toyota Hilux.

New car prices are crazy these days and most certainly unaffordable for the average person.
Click to expand...

You can push a 3 series up to over a mil through options. Stupid options but the fact that it is even possible...
 
mmmig said:
Well most people who own these cars really can't afford it, if it wasn't for their woolies card they would go hungry certain months
Click to expand...

Care to back that up with stats? Stop making such assumptions, there are people who can easily afford these prices without breaking a sweat. Also, some people get good car allowances.
 
They live in tents and eat 2 minute noodles for dinner . . . . . . . . .
 
This is why I see these fancy Merc coupes running around on the 80km/h biscuit wheel cause the owner can't afford a new tyre
 
Mistro said:
Care to back that up with stats? Stop making such assumptions, there are people who can easily afford these prices without breaking a sweat. Also, some people get good car allowances.
Click to expand...

Most people buy cars they can't really afford that's a basic fact of human nature. I know of a few people who have turned to their Woolies Card for when their bank funds runout. I'm was just making a general statement of the general South African reliance on credit and don't takes things so personally BTW :whistle:
 
Kayoss said:
New, Luxury and R500k? What car is this?

2.8 base Hilux DC starts at R500k. For a Hilux?! That's not even a 4x4 model... Closer to R700k for the 4.0 Dakar Hilux.

And that's not luxury, that's just your typical Hilux. Not a Fortuner, a Prado, or Land Cruiser.. Just a simple Toyota Hilux.

New car prices are crazy these days and most certainly unaffordable for the average person.
Click to expand...

Yes you're right, I just used 500k as a ballpark figure, but it can easily cost much more.
 
Strange title for this thread - luxury goods do not target the average person. Luxury items are purchased by wealthy people, or by idiots who want to bankrupt themselves. I know that there see exceptions, but a car is a rather expensive exception.

Average people generally buy average goods. Stop trying to keep up with the Jones's. You will be in debt up to your eyeballs before you know it.

I'm not trying to be nasty, but LIVE WITHIN YOUR MEANS.
 
mmmig said:
Most people buy cars they can't really afford that's a basic fact of human nature. I know of a few people who have turned to their Woolies Card for when their bank funds runout. I'm was just making a general statement of the general South African reliance on credit and don't takes things so personally BTW :whistle:
Click to expand...

Not taking anything personal at all, just find it bizarre that you would take personal opinion and present it as fact. Also, advice those people that you claim to know to live within their means, that could do them good.
 
Mistro said:
Not taking anything personal at all, just find it bizarre that you would take personal opinion and present it as fact. Also, advice those people that you claim to know to live within their means, that could do them good.
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It’s fact that SA majority citizens live off of debt
 
The fact that we have no deposit and balloon options is telling enough, yet I am sure many will still insist that's how they prefer things.
 
Kayoss said:
New, Luxury and R500k? What car is this?

2.8 base Hilux DC starts at R500k. For a Hilux?! That's not even a 4x4 model... Closer to R700k for the 4.0 Dakar Hilux.

And that's not luxury, that's just your typical Hilux. Not a Fortuner, a Prado, or Land Cruiser.. Just a simple Toyota Hilux.

New car prices are crazy these days and most certainly unaffordable for the average person.
Click to expand...

That's not a car, that's a double cab bakkie. And modern bakkie are pretty advanced, definitely not like the old bakkies.
 
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