South Africans who wish to own a fully-electric SUV will need to earn at least R87,000 per month to purchase it on a finance plan, according to a calculation by TopAuto.
The country’s cheapest electric SUV is the impending Volvo EX30, which was recently revealed to have a starting price of R775,900.
While that is undeniably still a lot of money, it’s a R300,000 drop in price compared to the company’s previous entry-level electric vehicle (EV) – the XC40 P6 Recharge – which bodes well for the potential release of even more affordable EVs further down the line.
The EX30 itself will have multiple powertrain options at launch, with the base model receiving a single rear-mounted motor and a 51kWh battery.
This setup produces 200kW and 343Nm, which allows the crossover to sprint to 100km/h in 5.7 seconds. It also has a range of 344km, and charging is expected to take as little as 25 minutes to go from 10-80% when using a fast cable.
The carmaker has not yet revealed the full specification sheet for the EV yet, but it has been confirmed that it will feature a 12.3-inch infotainment screen and a horizontal sound bar stretching across the dashboard in place of traditional speakers.
What you need to earn
The following formula will allow us to calculate what the monthly payments would be for the upcoming EX30.
- Car price – R775,900
- Payment term – 60 terms (5 years)
- Interest – 11.75%
- Deposit – 0%
- Balloon – No balloon payment
- Extras – No optional extras
Based on this, buyers will need to spend at least R17,257 per month to take home the Volvo.
Financial experts then recommend that you do not spend more than 20% of your gross monthly salary on vehicle payments.
This means South Africans interested in owning an electric SUV will need to earn at least R86,285 per month to be able to “afford” the vehicle.
Note that this figure does not account for insurance, fuel, and maintenance, which all need to be factored into your budget.
Keyword: What you need to earn to afford the cheapest electric SUV in South Africa