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South African car prices. I bet that phrase does anything but fill your heart with warm and fuzzy feelings, judging by the avalanche of heated comments that we find at the end of some articles.
Well, we've decided to investigate the state of car prices in South Africa by taking a wide sample of cars and comparing our prices with those in the UK and Germany.
Let's start off with a little disclaimer here as there are many factors that determine what we pay for our cars. Import duties are a huge factor and CO2 taxes must be considered too. Currently new cars imported into South Africa are slapped with a 36 percent customs duty and even the ones that are built here use imported components, which are also taxed.
In Europe, import duties do not apply to cars that are imported from within the European Union, but the sales tax imposed on new cars is still rather steep in the two countries that we sampled. Britons, for instance, pay 20 percent VAT while the German tax is pegged at 19 percent - in South Africa we get away with just 14 percent.
You'll find our full list of car price comparisons below the article but there are some that really warrant mentioning here. The biggest price discrepancy we came across was the Porsche 911 Turbo, which costs R2 033 000 in South Africa - very steep considering that buyers in the UK can have one for R1 240 110. Others, like the Audi A1, Lexus CT200h, Mini One and Renault Twingo RS Gordini also seem comparatively expensive on our shores.
Also disappointing is that the locally-made Mercedes-Benz C180 costs between R40K and R70K more than it does overseas and there's also an uncomfortable discrepancy with the other local product, the VW Polo GTI. The general feeling we're left with is that South African cars are still too expensive in most cases.
There is good news on some fronts, however, with the Indian-built Nissan Micra 1.2 Visia actually being marginally cheaper than it is in the UK, while Kia's new Picanto is not far off the mark.
When converting these international prices into rands, we decided not to use the latest exchange rate as the market crashes of the past few days has sent our currency into a flat spin and the figures would seem rather skewed. Instead, we used the exchange rate of the previous Friday, 5 August, as those numbers will be far closer to the figures that the car companies used when determining the current car prices.
On that note, if the current market volatility continues and the rand does not recover in the short term we can all expect some rather steep car price rises before the end of the year. Think South African cars are expensive now? This could be just the beginning.
For the record, the prices below were calculated at an exchange rate of R11.25 to the Pound and R9.78 to the Euro and all prices have been converted into rands. It's also worth noting that although we did our best to find the overseas models that most closely match the specification levels of the local cars in question, there are slight discrepancies in some cases. Many of our prices also include service plans, which is not often the case overseas.
INTERNATIONAL CAR PRICE COMPARISION:
AUDI A1 1.2 ATTRACTION:
SA - R219 900
UK - R150 975
GE - R154 524
BMW 1 SERIES M COUPE:
SA - R546 392
UK - R450 225
GE - R493 890
CHEVROLET CRUZE 1.6 LS:
SA - R198 565
UK - R160 987
GE - R175 942
FORD FIESTA 1.6 TREND:
SA - R178 020
UK - R140 062
GE - R147 678
HONDA JAZZ HYBRID:
SA - R244 698
UK - R210 768
GE - R228 754
KIA PICANTO 1.0:
SA - R99 995
UK - R89 381
GE - R91 834
LEXUS CT200h S:
SA - R343 300
UK - R283 500
GE - R290 955
MAZDA2 1.3 ACTIVE:
SA - R164 520
UK - R119 868
GE - R143 668
SA - R359 000
UK - R287 043
GE - R319 757
SA - R198 000
UK - R150 750
GE - R152 079
NISSAN MICRA 1.2 VISIA:
SA - R108 400
UK - R108 562
GE - R105 037
PORSCHE 911 TURBO:
SA - R2 033 000
UK - R1 240 110
GE - R1 468 515
RENAULT TWINGO RS GORDINI:
SA - R214 900
UK - R165 487
GE - R166 162
TOYOTA AURIS X:
SA - R185 600
UK - R167 332
GE - R170 172
VOLKSWAGEN POLO GTI:
SA - R261 600
UK - R218 418
GE - R223 228
why is it that in SA a plain "workhorse" bakkie costs more that the average car?
pete ess, wrote
When making price comparisons "How long do you have to work to buy your car?" is the real question that needs to be asked.
Before you guys start moaning again about Prices in SA , lets compare to prices here in Brazil. The only three cars available to buy here are as follows. Kia Picanto R 147 875 Merc C180 R 476 366 Porsche 911 a cool R3 251600 So stop complaining, the roads back in SA are 100% better as well so an SUV is really the only option. Try the Mini Countryman S make sense at R 607 200? SA is not as bad as you think
The Top Car magazine gives this info on a regular basis and it makes comparisons with more countries than reflected here.
you can also add the cost of finance. 0 % in most cases in usa against 10 to 12 % per year in SA.... Keep your old car for 10 or 15 years... that will make them nervous !
It's unfortunately not just car prices that are higher but most other consumer items as well. An HP printer cartridge from a high street shop in the UK costs 10 pounds = R120. Here it costs R452. Multi-focal specs with frame in Spain cost between 99 and 139 euros = R1400 say. Here they cost around R4000, at the lower end of the price range. Espadrilles (rope-soled tackies) here cost R900, but ordered on-line and delivered from Marks and Spencer, R100. Even beer (on special) from a supermarket in the UK was about the same as it is here, but salaries are higher there. Unfortunately you can't yet buy a car on-line but I live in hope. Meanwhile before you buy anything check its on-line price, add VAT and shipping, and see if you are willing to pay the local premium.
SA cars = total rip off CAR U$ Dollar Rand ($ x 7) AUDI A4 2.0T $32300 R226100 BMW 328i $34600 R242200 BMW 528i $45050 R315350 BMW 550i $60200 R421400 BMW 750i $82500 R577500 Mazda 3i Sport 2.0 $16705 R116935 Merc C300L $35900 R251300 Toyota Carolla LE 1.8 $17600 R123200
very good article, but what is the government doing about it?
Top Geariac, wrote
The goverment and the motor industry can dish up all the excuses they want. Cars are way more expensive in SA (for reasons I cant fathom), than the rest of the world and we are being ripped-off. The End
you also fail to take into account the average salary in the uk is around 27200 pounds a year (thats about R306 000 - a far cry from SA). given the above - you average person can buy an audi A1 (13 420 pounds) NEW on half a years salary!!!! now where's the perspective
Mpho eJozi, wrote
Now that we know the truth, in fact we knew about this since time in memorial. Let’s propose solutions to curb this anomaly and take corrective steps to remedy the situation. Can we file a class action against the Govt and the manufactures?
The ANC "Government" is making a fortune out of the SA motor industry in general. A cash cow until it's milked dry as they will find out.
Please add the additional costs for pathetic aftersales service and the idiocy of SA still buying Apartheid era manufacturers cars. May I remind SA that VW,Toyota,Nissan,Mazda,Opel,Ford never directly or indirectly disapproved of SA Apartheid
If government where to reduce the price of Taxes on cars then we will have to fork it out on petrol and licenses. It will also mean that we will pay more for toll roads. Please guys stop sitting on your brains and start thinking logically.
Interesting comparison done a few years ago is house prices compared to car prices in the same countries used in this excercise
This is scary but, look at the specifications of cars. in Europe a 3er BMW can be specced without AC, leather seats, simple central locking, black alloy wheels and wheel trim. GTI's come in 3doors and cloth seats. yes we are being screwed. but lets make sure we know how and why. The emmissions tax is also a govt fabrication. SABS has no equipment or testing procedure in place to test exhaust gases and our (heavily taxed)fuel is below standard as well.
Nothing will change because the consumer are willing to pay the prices. As soon as the consumer reallise they have the power this will change. Similar scenario to people striking for a wage increase. They have the power
My biggest problem is with like e.g. the Merc C180 that is produced locally. How on earth is it possible for us to pay more for the car locally than it is in a country where the car is imported from our shores?????? A CLEAR sign that we are being ripped off!!
The article should refer to % difference. The rand amounts does not make sense, one should compare % discounts between cars. One should also separate the 'locally built' vs totally imported models. If a vehicle is built in Germany it would make sense that it would be cheaper there. A car mad in Japan is exported to all 3 countries and can then be compared directly.
IOL should've included the USA prices when applicable. You think IOL's comparisons look like rip offs.... Check: http:home.autos.msn.comdefault.aspx Its the microsoft site with USA new and 2nd hand car prices. Eg: On the site a new 2011 Mitsubishi Outlander in the USA is: $21,995 - $27,795 (at R7 to the dollar thats about R153 000 - R194 000) Its over R400 000 here !! Bear in mind this is more than likely an imported car ! I can understand it being a bit cheaper in the USA due to their market size, but come on !! Time for an investigation into this...