The country has the worst ratio of car price to disposable income in a study of seven countries
14 June 2023 - 15:15
byMotor News Reporter
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It takes nearly eight years for the average South African to save for a Jeep Grand Cherokee compared with 0.8 years in the US.
Picture: SUPPLIED
SA has the worst ratio of car price to disposable income, followed by Colombia and Australia, according to a study by Compare The Market Australia on how car prices differ around the world.
The US has the best ratio, followed by Canada and New Zealand, in the survey of nine vehicle models and seven countries by the online comparison service.
According to the study it takes nearly eight years for the average South African to save for a Jeep Grand Cherokee 3.6 4x4 Limited compared with 0.8 years in the US and 1.2 years in Canada.
The research reveals that South Africans need nearly three years to put aside money to afford a Ford Ranger, Toyota Corolla or Mazda CX-5, compared with less than a year for most of the other countries surveyed.
Compare The Market Australia gathered car prices for the latest models from the car brand websites in seven different countries and compared them to see who is paying the most and the least for their new car.
Average disposable income data was sourced from the Organisation for Economic Co-operation and Development (OECD) better life index. Car prices in each country were divided by the annual average disposable income to create a ratio of car price to disposable income.
The Toyota Hilux and Honda Civic were not available in all countries explored, so the closest equivalent models — the Toyota Tacoma for Canada and the US, and the Honda City in Colombia — were used instead. In New Zealand and Colombia, only hybrid versions of the new Toyota Corolla were available.
Compare the Market’s analysis gathers prices from official car brand websites in each country, then converts from their local currency into US dollars. The prices didn't include additional on-road costs associated with purchasing a new vehicle.
The research revealed that Canada had the best prices overall, with six out of the nine models cheapest in that country. They were the Toyota Corolla, Mazda 3, Mazda CX-5, Mitsubishi Outlander, Subaru Forester and Jeep Grand Cherokee.
On the other end of the scale, SA was the most expensive for the Mitsubishi Outlander, Toyota Corolla and the Honda Civic.
In spite of the economic challenges facing local consumers, SA’s new-vehicle sales have grown in 2023. In the year to date, total new-vehicle sales of 218,869 units are 3% higher that last year’s matching period.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
International News
SA fares worst in study of car affordability
The country has the worst ratio of car price to disposable income in a study of seven countries
SA has the worst ratio of car price to disposable income, followed by Colombia and Australia, according to a study by Compare The Market Australia on how car prices differ around the world.
The US has the best ratio, followed by Canada and New Zealand, in the survey of nine vehicle models and seven countries by the online comparison service.
According to the study it takes nearly eight years for the average South African to save for a Jeep Grand Cherokee 3.6 4x4 Limited compared with 0.8 years in the US and 1.2 years in Canada.
The research reveals that South Africans need nearly three years to put aside money to afford a Ford Ranger, Toyota Corolla or Mazda CX-5, compared with less than a year for most of the other countries surveyed.
Compare The Market Australia gathered car prices for the latest models from the car brand websites in seven different countries and compared them to see who is paying the most and the least for their new car.
Average disposable income data was sourced from the Organisation for Economic Co-operation and Development (OECD) better life index. Car prices in each country were divided by the annual average disposable income to create a ratio of car price to disposable income.
The Toyota Hilux and Honda Civic were not available in all countries explored, so the closest equivalent models — the Toyota Tacoma for Canada and the US, and the Honda City in Colombia — were used instead. In New Zealand and Colombia, only hybrid versions of the new Toyota Corolla were available.
Compare the Market’s analysis gathers prices from official car brand websites in each country, then converts from their local currency into US dollars. The prices didn't include additional on-road costs associated with purchasing a new vehicle.
The research revealed that Canada had the best prices overall, with six out of the nine models cheapest in that country. They were the Toyota Corolla, Mazda 3, Mazda CX-5, Mitsubishi Outlander, Subaru Forester and Jeep Grand Cherokee.
On the other end of the scale, SA was the most expensive for the Mitsubishi Outlander, Toyota Corolla and the Honda Civic.
In spite of the economic challenges facing local consumers, SA’s new-vehicle sales have grown in 2023. In the year to date, total new-vehicle sales of 218,869 units are 3% higher that last year’s matching period.
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