Here’s how badly South Africa ranks for car affordability. Picture: Auto-mobility.
A new study on car affordability ranks South Africa the lowest out of seven countries.
Here’s how badly South Africa ranks for car affordability. Picture: Auto-mobility.
A new study on car affordability has found that South Africa ranks worst when comparing the ratio of car prices to average disposable income in the country.
According to the study conducted by Compare the Market Australia, and reported on by Business Live. South Africa ranks worse than Columbia, Peru, Australia, New Zealand, Canada and the United States.
It’s pretty simple, the team at Compare the Market Australia took nine models of car that are available across each of the seven countries and crunched the numbers.
They compared prices in each market and sourced income data from the Economic Cooperation Development Better Life Index (OECD) in each country. A ratio was calculated between disposable income and car prices.
ALSO READ: EVERYTHING you need to know to get your PDP
Another calculation was made to estimate how long buyers in each country would need to save to purchase each vehicle. You can check out the full graph/table above, but the worrying take-aways are these:
It’s not all 100% accurate. For one thing, a Toyota Hilux and Tacoma are not a like-for-like pick-up truck, despite what many will say. And the mighty Hilux is not available in Canada or the US, so we take that comparison with a pinch of salt.
ICYMI: Government reduces vehicle registration fees
What do you think? Are cars in South Africa too expensive? Let us know in the comments section below.