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

By Stuart Johnston 

A monthly repayment budget of R16 000 a month will gain entry into the premium segment of the new  SUV market in South Africa. For 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.

Blue-chip customers will be able to negotiate an interest rate  closer to the current prime interest rate of 10 per cent  but for most buyers, a rate of 12 per cent interest on the financed amount is a good working average.

The purchase price limit using  this method is R795 000

We use WesBank’s repayment calculator (easily available on-line) to work out the ceiling purchase price for SUVs at a repayment of R16 000 a month. Using our standard repayment parameters ( as detailed above), 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 R79 500. These calculations are made without factoring in any residual (balloon) payment at the end of the finance period.

You are into the premium-level  of the SUV market at R16 000 a month

The R16 000 monthly  repayment allows you to look at the premium segment of the SUV market. Obviously, if you can afford a repayment of R16 000 per month you would also consider slightly less expensive models that would not stretch your budget to its maximum. It is also worth mentioning at this stage that a legal requirement of financing a car deal is that the vehicle is insured, and the monthly premium on a vehicle costing just under R800 000 would be substantial!

So what models can I consider?                                                                                           

At the upper end of the price bracket is the Range Rover Evoque SE TD4, listed at R792 471. Marginally less is the Mitsubishi Pajero five-door 3,2DI-D GLS Exceed, and it is interesting how close these two cars are priced, as they represent opposite ends of the approach to SUVs, and what they stand for. The Range Rover Evoque is  all about high style, while the Mitsubishi is all about high ground clearance!

Nevertheless these two names enjoy huge prestige in the SUV market. Range Rover’s parent company Land Rover began producing SUVs way back in 1948, while Mitsubishi has decades of successful Dakar off-road racing to its credit.

 If you are an SUV fan with intent to explore uncharted territory, the Land Rover you should consider would be the new Discovery, launched just over a year ago, and the Discovery Sport SE TD4 is a highly-specced luxury model with serious off-road potential, costing R766 1`04.

On the other hand, we were very impressed recently by the (also recently-introduced) Mitsubishi Pajero Sport, with the 4X4 model coming in at R599 995 and offering an excellent blend of luxury and an off-road ability that is amongst the best of any vehicle in the market.

Jeep is another household name

Another name that draws heavily on heritage in the SUV market is Jeep, and here the model closest to your budget limit is the Jeep Grand Cherokee 3.6 Laredo, at R786 900. Jeep Cherokees have gained a reputation in this country for offering a lot of car for the money, and the reasonably strong sales figures of the Cherokee models reflect this.

What about the Japanese models?

The Japanese player that springs to mind is, of course, Toyota, as its Fortuner range is the best-selling SUV in South Africa (with a repayment figure starting at around R10 000 a month). At this premium level, however, you might consider the Toyota Land Cruiser 76 4.5-4D LX V8 Station Wagon, one of the super-prestigious hard-core SUVs on the block (although don’t expect good fuel economy!)

And then there are the so-called “soft roaders”

So far we have looked at the “hard-core” spectrum of the SUV market. But there is a host of models to choose from where the emphasis is more about road presence, space and luxury. And here we have strong players from Audi, BMW, Mercedes-Benz, Jaguar and Volvo to consider, as well as the upper-end models from the Korean manufacturers, Kia and Hyundai.

Consider the used-model option

Of course,  there is always the option of buying a used model with attendant  price benefits, and  this is where AutoTrader plays  such a huge role in South African mobility.  We suggest that once you have made your choice on a new model, you key in those model details on our used car search engine, where currently over 70 000 used cars are listed!

Well worth checking out

The following is a list of SUVs  that covers both off-road and on-road orientated SUVs that are worth a second or third look at your R16 000 a month repayment budget:

Toyota Fortuner  2.8GD-6 Automatic                                                              R583 800

Mitsubishi Pajero Sport 2.4 D4 4X4                                                                 R599 995

Hyundai Tucson 1.6 Turbo 4WD Elite Sport                                                R604 900

Subaru Forester 2.0 XT                                                                                              R612 000

Ford Everest 3.2 4WD                                                                                                R655 000

Volvo XC60 T5 AWD Momentum                                                                       R686 500

Jeep Cherokee 3.L Limited                                                                                      R688 900

Audi Q5 2.0TDI quattro                                                                                            R704 000

Kia Sorento 2.2CRDi AWD EX                                                                                R706 995

Jaguar E-Pace D150 AWD HSE                                                                               R746 116

Mercedes-Benz GLC 250d 4Matic                                                                       R730 436

BMW X3 xDrive 30i                                                                                                     R753 131

Toyota Land Cruiser 76 4.5D-4D LX V8 Station Wagon                         R760 900

Land Rover Discovery Sport SE TD4                                                                   R766 104

BMW X4 xDrive 20i                                                                                                     R781 987

Mitsubishi Pajero 5-Door 3.2DI-D GLS Exceed                                           R789 995

Range Rover Evoque SE TD4                                                                                   R792 471