How much compact car can I buy for R9 000 a month?

By Stuart Johnston

In America, “compact cars” are defined by measurements as supplied by the US Environmental Protection Agency, and the term applies to cars that have a length of 4,1 metres or less. More recently the term has been broadened there to take in compact MPVs.

In Europe the term applies to larger hatchbacks, such as Golfs, but we generally refer to these cars here as “larger hatchbacks”.

In South Africa the small MPV segment is  an area of the market that has been out-dazzled by the so-called Cross-over models, and the more popular hatchbacks in recent years.

 There are a few cars that transcend these boundaries here, one of them being the Honda Jazz, which is neither a hatchback nor a Cross-over, but seems to fit the definition of “compact” perfectly.

There are other examples too, such as the Mercedes-Benz B-Class, although this car just falls out of our price range, the basic example being  over the R450 000 mark. Which bring us to the next point of this story…

How much does R9000 buy me in terms of purchase price?

The purchase price upper-end limit for  a R9 000 monthly repayment  is just under  R445 000. AutoTrader’s standard repayment template for this sort of purchasing advice article settles on  a 10 percent deposit on the list price, a repayment period of 60 months, and an interest rate on the financed amount of 12 percent.

Customers who have been in the game for a long time  with excellent credit records (and larger salaries) will often be able to negotiate an interest rate  closer to the current prime interest rate of 10 per cent,  but as a workable average, a rate of 12 percent interest on the financed amount is par for the course.

A 10 percent deposit on just under R445 000 works out at  R44 700

We again used WesBank’s repayment calculator (easily available online) to work out the ceiling purchase price for these so-called compacts, with a R9 000 monthly repayment as out starting point. Using our standard repayment parameters  the  maximum  list price is  just under  R445 000. The 10 percent deposit works out at just under R44 700.

We focused on a few cars that fit the compact description, between R280 000 and R445 000

In the bracket between R280  000 and R445 000 there are a host of vehicles that fit the compact description. But many of these are traditional hatchbacks, which we have this month covered under headings such as “How much hatchback can I buy for R9000?”

Honda’s Jazz almost defines a compact car in our market

In our definition, the main emphasis of a compact here is on practicality, and for that reason we include the Honda Jazz  pretty much as a starting point. The Honda Jazz, introduced  here near the beginning of the 21^st century, has built up a huge reputation as the choice of people who value practicality. The Jazz was really one of the first to develop a sort of cross-over theme between a hatchback and an MPV and was noted for a small overall exterior size that belied its amazing loading capability and versatility.

Renault’s Captur is a compact stylised cross-over

Renault’s Captur is another car that sits outside of the normal categories, although the cross-over description fits it well. Unlike the Jazz, which has practicality as its keynote, the Captur is first and foremost a high-style car, but has all the modern conveniences the small, urban family needs. It does have some rough-road leanings in that it has a raised ride-height, but overall it offers a bit more space than your average hatchback.

Toyota’s C-HR is a compact, empty-nester cross-over

Compact is the word that springs to mind when you talk about Toyota’s C-HR. More than most recent Toyotas, this compact Cross Over has put style firmly before practicality. The car is distinctly snug when it comes to the rear passenger compartment, and the high doors at the rear will make this a grumpy place for young kids who like a feeling of spaciousness when travelling.  So,  best for empty-nesters, then. Or couples who aren't keen on having kids. On the other hand, it’s one of the more dramatic styling statements from Toyota in recent years, and it is beautifully engineered - it was also a SA COTY finalist recently. The 1.2-litre turbo motor really delivers too!

Suzuki Vitara - a not-so-compact player

Suzuki’s Vitara gets a mention here in this segment, because it is quite often overlooked when people make their  SUV or Cross Over choices. The Vitara is nevertheless categorised as a compact SUV, and an exceedingly good one at that, with surprising rough-road abilities, as well as a well-executed, no frills approach to accommodation, a hall mark of Suzukis in general. This car will surprise you on many levels. The top models also get all-wheel-drive. Even the front-wheel-drive Vitaras can go places you wouldn't think would be possible.

Volvo V40 - A snug hatchback to complete the list

Volvo’s V40 is a hatchback, but what a nice compact hatchback it is! Volvo goes its own way when it comes to configuring a car’s styling, both inside and out, and it retains a reputation for solid no-nonsense engineering that enables these cars to age extremely well.  Beautifully built with a striking interior, this is a compact in the hatchback class that is well worth considering!

Here’s our quick check list and prices for our stand-out “compacts”:

Honda Jazz  1.5 Sport                                                                              R312 900

Renault Captur 88kW Dynamique auto                                        R322 900

Suzuki Vitara 1.6 GLX AllGrip                                                              R364 900

Toyota C-HR 1.2T Plus                                                                            R376 100

Volvo V40 D2 Kinetic                                                                              R394 600