Owning a premium German car in South Africa has become a luxury reserved for the country’s top earners.
As prices soar well above inflation, the affordability of the cheapest models from Audi, BMW, and Mercedes-Benz now requires buyers to be in the upper-income brackets.
According to the latest TransUnion Mobility Insights Report, the cost of new vehicles rose only slightly in the third quarter of 2025.
This index, which tracks pricing trends for new and used vehicles from 15 top-volume manufacturers, showed a 1.5% year-on-year increase in new car prices during this period.
While all vehicle segments experienced price hikes, hatchbacks saw the lowest increase, with a 0.7% rise compared to last year.
Despite this, over a longer period, hatchbacks—often the entry-level models for luxury brands—have seen the steepest price increases.
This is evident in the cost of the Audi A1, BMW 1 Series, and Mercedes-Benz A-Class. The Audi A1, currently the most affordable option among the three, is priced at R530,900.
10 years ago, the same vehicle cost R265,000, which means the price of the model has increased by R265,900 (100%).
The BMW 1 Series follows at R713,395, while the Mercedes-Benz A-Class tops the list at R813,124.
These prices reflect price increases of R371,395 (109%) and R423,924 (109%), respectively, compared to 2015.
These figures highlight how much the landscape of vehicle affordability has shifted, with over 75% of all cars in South Africa now costing more than R500,000.
Several factors contribute to these rising costs. The weak rand and a sluggish local economy have made it increasingly expensive to import and sell vehicles in South Africa.
This has had a profound impact on sales for premium brands. Over the past decade, combined sales for Audi, BMW, and Mercedes-Benz have plummeted by 63.5% since 2014.
At the same time, competitors from other markets, particularly China, have gained traction by offering competitive pricing, advanced technology, and solid build quality, reshaping the market dynamics.
What you need to earn
The affordability challenge becomes even starker when considering the financial commitment required to own one of these vehicles.
Using the Audi A1 as an example, financing the car over 60 months at an 11.50% lending rate (prime rate of 10.25% plus 1.25%) with no deposit would result in a monthly instalment of approximately R11,771.
Financial experts advise that car payments should not exceed 25% of your monthly income. By this standard, you would need to earn at least R47,100 per month to comfortably afford this vehicle.
To put this into perspective, data from the World Inequality Database indicates that earning R47,100 places you among South Africa’s top 10% of income earners.
This means 90% of South Africans earn less than this threshold, underscoring the exclusivity of owning even the cheapest models from these premium brands.
The cheapest Audi, BMW, and Mercedes-Benz are listed below, along with the starting price, estimated monthly instalment, and monthly salary required to afford the vehicle.
Audi A1
- Starting price: R530,900
- Monthly instalment: R11,771
- Estimated monthly salary required: R47,100
BMW 1 Series
- Starting price: R713,395
- Monthly instalment: R15,785
- Estimated monthly salary required: R63,200
Mercedes-Benz A-Class
- Starting price: R813,124
- Monthly instalment: R17,978
- Estimated monthly salary required: R71,900
