How much hatchback can I buy for R16 000 a month?

By Stuart Johnston

The facts are, that when you get up into the heady territory of a R16 000 a month monthly repayment, if it’s a hatchback that you are after, you can buy virtually any hatchback available on the South African market. That “virtually” reference is there because there are one or two that you can’t afford at this budget limit.  The car that first springs to mind is the Mercedes-AMG A45 4MATIC, which comes in at R812 259, although we are sure you could negotiate a marginally lower-than-list price on one of these right now, as they have been on the market for some time.

Even more out of our league at this price is the brilliant Audi RS3 Sportback Quattro, at R903 500. Okay, it’s called a 'sportback', but basically it’s a hatchback.

In this area of 'hatchbackdom' we are looking at the top, sophisticated, performance-orientated models, and we are pleased to say that there are a number of superb options on offer here.

Hot-hatches could be seen as entry-level supercars

Ever since Volkswagen invented the concept with its first-gen GTi in 1976 (although the first GTi here only arrived in the early 1980s), young enthusiasts have held cars like the hottest Volkswagen, and the equivalents from the likes of Renault, Honda, Ford and others , as junior supercars that can realistically aspired to.

Of course when it comes to hatchbacks in general, a  monthly repayment figure of R16 000 a month gives you a whole bunch of options, as you can always put some of your monthly budget aside.

What is my purchase price ceiling on a R16 000 repayment budget?

 For practical comparative purposes, AutoTrader’s standard repayment template for this sort of purchasing advice article assumes a 10 percent deposit on the purchase price, a repayment period of 60 months, and an interest rate on the financed amount of 12 percent.

Customers with excellent credit records and a very healthy  income will be able to negotiate an interest rate  closer to the current prime interest rate of 10 percent  but for most buyers, a rate of 12 percent interest on the financed amount is a good working average.

The purchase price limit using  this method is R795 000

Once again we employ WesBank’s repayment calculator (easily available on-line) to work out the ceiling purchase price for sedans at a repayment of R16 000 a month. Using our standard repayment parameters  the ceiling price for a repayment of R16 000 a month is a list price of just over R795 000. The 10 per cent deposit works out at just under R80 000. These calculations are made without factoring in any residual (balloon) payment at the end of the finance period.

At this price level you can buy an extremely hot hatch

The realistic hatchback offering that comes in closest to  the upper-end of our R16 000 a month budget  limit is the Volkswagen Golf R , which is a very potent performer with all-wheel-drive. Basically using a tuned version of the GTI motor, it pumps out 213 kW and 380 Nm of torque. It’s rated 0-100 km/h time is just under the 5.0 second bracket, and it is an extremely good-looking vehicle with understated performance trimmings. It costs R664 400.

Even more understated in appearance is the Volkswagen GTI, the less-expensive front-wheel-drive version of the Golf R. Many people actually prefer this model to the all-wheel version as it has a slightly more supple ride and feels slightly more nimble. It’s also a fair bit cheaper a R548 600. Note that these prices exclude options, and Volkswagen is rather famous for loading their upper-end models with options which aren’t exactly cheap.

An alternative to the Golf R, with slightly more power from a mechanically-similar package, is the excellent Audi S3 Sportback Quattro with a 0-100 km/h time rated at 4,6 seconds! The nice thing about this car is that it enjoys less boy-racer overtones than the Golf equivalents.

Talking of “boy racer”, the most overtly boy-racer hot hatch available at present is the newly-launched Honda Civic Type R. It is brash in the extreme, but we like it for that, because its wings and scoops and huge wheels actually fit in with the car’s purpose, which is to be the best and baddest hot-hatch on the planet. This car has amazing mix of performance and handling that is unmatched by any hot hatchback at this time. We rate it as our performance hatchback king!

Ford still lists the Focus RS for sale here. This was a great car in concept, but unfortunately reliability issues have blighted its reputation, both in South Africa and abroad. It is actually the car that comes closest to our price limit, at R712 900, but with numerous major engine and transmission issues  having been reported to us, we can’t recommend it until these issues have been resolved. We believe that Ford is working on solutions, however.

It is a pity that Renault no longer markets a super-potent hot hatch here, but the hottest one on sale now, the Mégane  151 kW GT is a nice medium-hot package with good looks. You’d also save a whack on your monthly repayment budget. Other cheaper but very cheerful hot hatches to consider would be the Mini 3-Door John Cooper Works model and Abarth’s 500 C 595 Competizione 1,4T.

And for a more conservative option you could look at the Volvo V40 T5 Momentum.

Even if you are buying new, it is worth checking up on the used-car market

As always, we advise our readers to check up on the re-sale prices achieved by used examples of the cars on your short-list. You might also want to check up on the sales figures achieved by your chosen models by checking on the latest NAAMSA figures. The more popular your choice, the easier it will be to sell it on to a used buyer or dealer, when the time comes to trade it in.

These are your  hot-hatch options at R16 000 a month or less

Mini John Cooper Works Hatch 3-Door	R491 095
Abarth 500C 595 Competizione 1.4T	R504 900
Volvo V40 T5 Momentum	R519 000
Volkswagen Golf GTi	R548 600
Honda Civic Type R	R635 500