Cars you can buy in South Africa for R1 million

On Mar 19, 2023

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Being able to afford a vehicle with a price tag of R1 million will remain a dream for many, but if you’re one of the lucky few, this will allow you the prestige of owning several luxury cars offered by BMW, Mercedes-Benz, Volvo, and Lexus – among others.

Luxury cars have always been a symbol of status and success, which also holds true in South Africa.

Alongside the prestige factor, luxury cars are also known for their quality and performance. Luxury car brands are synonymous with high-quality materials, advanced technology, and superior craftsmanship.

These factors can make owning a luxury car a more enjoyable driving experience and are often perceived as being more reliable and safer than the average car, employing rigorous safety standards in their manufacturing processes.

However, to afford any of the cars on this list is no small feat, requiring the buyer to earn at least over three times the average salary in South Africa, which currently stands at R24,813.

The cheapest car on this list is the Audi Q5 40TDI quattro Advanced, retailing at R992,100 off the showroom floor.

Using Wesbank’s vehicle finance calculator, assuming no deposit and a 0% balloon payment over five years (60 months) at an interest rate of 10.75%, the estimated monthly repayment is R21,497 per month for the Audi Q5.

The abovementioned interest rate follows a recent rate hike by the South African Reserve Bank (SARB) in January, taking the prime rate from 10.5% to 10.75%.

Industry experts still recommend that prospective buyers shouldn’t spend more than a quarter (25%) of their monthly income on vehicle-related costs. So, if you earn R20,000 monthly, your total vehicle expenses should not exceed R5,000. And this should apply to the whole vehicle expense, including:

Vehicle instalments
Insurance premiums
Fuel costs

Considering this recommendation, the minimum monthly salary required to afford the Audi Q5 is R86,000.

This equates to just over R1 million per annum, putting those that can afford these vehicles in the top 4% of income earners in the country, according to the latest World Inequality report.

To put this in perspective, 96% of the population is poorer than those who can afford these cars, with the bottom 50% of working adults earning roughly R12,300 a year and the top 10% making more than 60 times that at around R780,300.

While there are hundreds of new vehicle models on the market in South Africa, only around a dozen have a price tag of around R1 million, with plenty more costing well over R1 million.

The top 10 luxury cars you can buy in South Africa right now for around R1 million are listed below.

Audi Q5 40TDI quattro Advanced