Cars are expensive; we can't deny that. However, the entry-level is thriving at the moment with a host of products to keep your bank account content. However, a rumour in 2021 claimed you could get a car for R150 per month, which sounds outrageous by today's standards. Though, how true is this?
Related: The Bajaj Qute: Everything you need to know about SA's new cheapest 'car'
Way back in 2021, the Bajaj Qute entered the scene and was unveiled at Nampo. This little vehicle caused outrage on social media for its rumoured R150-per-month price and the fact that you can buy it for only R5000. Again, outrageous, but the prospect of an affordable runabout is enticing.
What is the Bajaj Qute really?
Despite having four wheels, a shell and four seats for four people, the Qute is not legally classified as a car but rather a compact quadricycle. They're aimed at last-mile and intra-city transportation, which is why they've been used for e-hailing en masse recently. They essentially replaced the three-wheeled tuk-tuks you saw rolling around the city. Though they're not legally allowed to be on the highway. Performance-wise, the Qute is powered by a 0.2-litre single-cylinder petrol engine making 9.7 kW / 18.9 Nm, with power channelled through a 5-speed gearbox. Claimed fuel consumption is 3.0 L/100 km. The maximum speed capable is 70 km/h. Safety hasn't been skimped on, as Bajaj states that the Qute has a high-strength monocoque body, impact-resistant plastic closures and doors, plus seatbelts all round. Back in its home country, India, the Bajaj has undergone stringent testing to meet the needs of this type of transportation, which has contributed to its success on South African roads.
What is the actual cost?
After chatting to a few dealers, we found that the recommended retail price of the Qute starts at R104 899. If you were to finance this vehicle, using the AutoTrader Finance Calculator, we can see the indicative monthly payments. We'll use a typical finance agreement with a 72-month term and a 10% deposit to calculate the monthly repayments, as that's the average terms car buyers tend to use. You can have a balloon or residual payment, but we won't use that in this calculation. For this calculation, we'll use an interest rate of prime plus 2% for an interest rate resulting in 13.75%. Your credit profile determines the interest rate, so you'll need to check which rate you qualify for. After our calculation, your payment will look like this for a Qute:
Purchase Price: from R104 899
Monthly repayments: R1933
Total Interest: R44 750
A bit of a far cry from the proposed R150 per month
But....
The question of e-hailing then comes up: Is it cheaper to lease than to own in that respect? On a recent Bajaj South Africa Facebook post, you could own a Bajaj for R1999/week when using it with an e-hailing service such as Bolt. Which means you could pay it off in the space of a year or 2 if you use it with the relevant e-hailing service. Though if you're using the Qute elsewhere, then the above finance calculation applies.
