How do SA banks calculate car affordability?

South African banks use two NCA-aligned rules: your vehicle instalment cannot exceed 25% of gross monthly income, and total debt repayments (including the car) cannot exceed 36% of gross monthly income. The more binding of the two limits your approval.

What income do I need to buy a R300,000 car in South Africa?

For a R300,000 car with 10% deposit over 72 months at 12.25%, your instalment is approximately R4,800/month. Under the 25% rule, you need a gross income of at least R19,200/month to qualify.

NCA Affordability Rules Applied

What Car Can
You Afford?

Enter your salary and existing debt. We apply the same 25% and 36% rules SA banks use to size your approval, before you walk into a dealership.

SA Prime Rate: 10.25% — May 2026

Gross Monthly Income

Before tax — joint applicants: combine both salaries

Existing Monthly Debt Payments

Bond, credit cards, personal loans, store cards

Deposit + Trade-in Value

More deposit = more expensive car you qualify for

Finance Term

72 months84 months: near upper limit — stricter credit checks.

Interest Rate

Prime = 10.25% · Banks use the rate you qualify for, not prime

With Balloon i

0% — None

How SA Banks Calculate Affordabilityi

Rule	SA Bank Standard	Your Numbers
Max vehicle instalment	25% of gross income	R 8 750
Max total debt service	36% of gross income	R 12 600
Initiation fee (NCA cap)	R 1,207.50	Financed in
Monthly admin fee (NCA cap)	R 69.00	+ R 69/month

Know Your Take-Home Pay? Find Your Grossi

SA banks assess affordability on gross income, not take-home. Enter your monthly net pay and we will estimate your gross using the 2025/2026 SARS PAYE brackets.

Monthly Take-Home Pay (net)

Estimated Gross Income

—

Deposit Savings Planneri

A 10% deposit on your maximum qualifying price is a good target. It avoids negative equity for the first year and typically lowers your interest rate.

Target deposit (10% of max): R 45 989

Saving R 2 000/month

Time to save deposit

23 months

2 years away. Consider boosting your monthly savings.

You already have R 20 000 in deposit entered above. You need R 25 989 more to reach the 10% target.

Maximum Vehicle Price You Qualify For

R459 890

Max monthly instalment (25% of income)R 8 750

Total debt allowance (36% of income)R 12 600

Existing debt paymentsNone

Available for car paymentR 8 750

Max price with 0% balloonR 459 890

Note: The balloon inflates the price you qualify for by ~0%, but you're not buying more car — you're deferring a lump sum. SA banks love balloons because you pay more total interest.

Try in Instalment →Total Cost →

Spending Tiersi

Budget

R 275 934

Comfortable

R 367 912

Maximum

R 459 890

How SA Banks Determine Car Affordability

South African banks don't just look at whether you can "afford" the monthly payment. They apply strict National Credit Act (NCA) guidelines to protect both you and the lender from over-indebtedness.

The 25% Rule

Your total vehicle finance instalment (including the R69/month admin fee) cannot exceed 25% of your gross monthly income. On a R35,000/month gross salary, the maximum vehicle instalment is R8,750. This is the primary cap.

The 36% Total Debt Rule

All your monthly debt repayments combined (car, home loan, credit cards, personal loans, store accounts) cannot exceed 36% of gross income. If you already have R5,000/month in debt, only R7,600 of your R12,600 total allowance remains for a vehicle payment (on a R35,000 salary).

Joint Applications

If you're applying jointly with a partner or spouse, combine your gross incomes. Both parties' existing debts must also be declared. Joint applications can significantly increase your maximum vehicle price.

How to Maximise Your Approval Amount

Reduce existing debt first. Every R1,000/month reduction in credit card minimums or personal loan payments frees up R4,000+ in vehicle buying power.
Save a bigger deposit. Deposit goes directly into your vehicle price ceiling: R50,000 deposit = R50,000 more car you qualify for.
Improve your credit score. Moving from prime+3% to prime+1.5% saves R30,000+ in interest on a R400,000 vehicle over 72 months.
Avoid balloon payments as a workaround. Yes, a balloon increases the car price you can "qualify" for, but you're not actually buying more car. You're deferring a lump sum you'll need to pay later.

What Income Do You Need for Common SA Car Prices?

Vehicle Price	10% Deposit	Est. Instalment	Min Gross Income Needed
R150,000	R15,000	~R2,400/mo	R9,600/mo
R300,000	R30,000	~R4,750/mo	R19,000/mo
R450,000	R45,000	~R7,100/mo	R28,400/mo
R600,000	R60,000	~R9,500/mo	R38,000/mo
R900,000	R90,000	~R14,200/mo	R56,800/mo

Based on 72-month term, prime + 2% (12.25%), 10% deposit, no existing debt.

What Car Can You Afford?