How much will the cheapest German cars set you back in 2025?

Updated Jan. 7, 2025, 8:02 a.m. | By East Coast Breakfast

Car prices have skyrocketed over the past decade, with German luxury vehicles leading the pack. But how much will the most affordable of these high-end machines set you back in 2025?

How much will the cheapest German cars set you back in 2025? — vesilvio / iStock

Everybody dreams of owning a luxury German automobile because German cars are the epitome of engineering, luxury and speed.

Some of the most prominent car brands we associate with success and wealth are German. Think Mercedes Benz, BMW, Audi, Porsche and Volkswagen. Unfortunately, owning one of these cars is now a luxury reserved for the top earners in the country.

Over the past decade, the retail value of cars has risen exponentially with 70% of all cars costing north of R500,000. According to the latest TransUnion Vehicle Pricing Index (VPI), vehicle sales dropped 6% in 2024, as new car prices showed a 4.4% year-on-year increase during this period. This is a rate of 1.5% higher than inflation.

Hatchbacks, which are considered entry-level models, saw the highest price hike at 7.6%. Cars like the Audi A1, Mercedes A-Class and BMW 1 Series are the perfect example of this.

Currently, the base model Audi A1 is the cheapest German hatchback in the country, priced at R523,200. The BMW 1 Series comes second at R713,395, while the Mercedes-Benz A-Class tops the list at R826,024.

With that in mind, how much would these cars set you back, and how much do you need to earn to comfortably own one?

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According to BusinessTech, financial experts recommend keeping your monthly car payment at no more than 25% of your monthly income.

With that in mind, let’s break down the approximate costs of these luxury cars and the income you’d need to afford them comfortably.

Here are the constants we’ll use for the calculations:

Lending rate: 12.5%
Repayment period: 60 months

Audi A1

Base price: R523,200

Monthly installment: R11,867

Est. monthly salary: R47,500

BMW 1 Series

Base price: R713,395

Monthly installment: R16,146

Est. monthly salary: R64,600

Mercedes-Benz A-Class

Base price: R826,024

Monthly installment: R18,680

Est. monthly salary: R75,000

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These numbers are staggering. The least expensive option, the Audi A1, requires a monthly income of about R47,500 – placing you among the top 10% of earners in South Africa.

Given the country’s high unemployment rate, soaring cost of living, and relentless inflation, it’s no surprise that Chinese car brands have surged in popularity on South African roads.

Brands like Haval, Jetour, Omoda and Jaecoo offer feature-packed, high-quality vehicles at much more affordable prices. For the cost of a base-model German car, you can drive away in a flagship Chinese model.

These brands are reshaping perceptions, proving that owning a reliable, stylish car doesn’t have to break the bank. While German cars remain synonymous with engineering excellence and luxury, they also depreciate just like any other vehicle.

By sticking to their exorbitant pricing, German manufacturers may be driving consumers straight into the arms of these more accessible Chinese competitors.