Street Smart Financial Solutions

How much you need to earn to drive a Toyota Hilux double-cab 4×4

If you want to own a Toyota Hilux double-cab with 4×4, you need to earn a decent monthly salary.

The best-selling bakkie from Toyota is available in a range of trim options, with local pricing starting at R449,000 and going all the way up to R868,000 for the top-end model.

To see how much an “average” double-cab from the brand will cost you, we used the Toyota Hilux 2.4GD-6 double-cab 4×4 Raider model.

The vehicle sells for R595,400 new and ticks all the bakkie boxes.

It sports a 2.4-litre turbo-charged diesel engine, puts out 110kW and 400Nm of torque, and sits high enough to let you drive over rocky hills and shallow rivers.

Monthly payments

To see how much you “need” to earn to drive this Hilux, we must first calculate the monthly installments of a finance plan.

We used the following parameters for this example:

  • New Hilux Price – R595,400
  • Payment Term – 60 months (5 years).
  • Interest – The rate was set at 9%.
  • Deposit – A 10% deposit was put down.
  • Balloon – No balloon payment was used.
  • Extras – No optional extra were fitted to the cars.

This produces a monthly finance payment of R11,218.

The total cost of the finance deal is R673,108 – and the buyer will pay total interest of R131,860 over the lifetime of the deal.

How much you need to earn

To work out how much you need to earn to comfortable pay off this finance deal, we took advice from financial services providers.

Financial experts recommend that you do not spend more than 30% of your annual gross salary when buying a new car.

Looking at your monthly salary, it is recommended that you do not spend more than 20% of your gross monthly income on car payments.

Your gross monthly income is what you earn before deductions – specifically income tax.

A monthly finance payment of R11,218 for your Hilux double-cab means you must earn R56,000 per month to fall within the guidelines above.

It is also interesting to note that R56,000 per month after tax comes to R41,623 in take-home pay.

The R11,218 monthly installment on your Hilux in combination with insurance and fuel is likely to be around the R15,000-per-month mark – which makes your total payments on your car roughly 36% of your after-tax salary.

Source : www.topauto.co.za

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