Car finance calculator
Work out your monthly vehicle instalment, including a balloon payment, and see the real total cost before you sign.
What is a balloon payment?
A balloon (or residual) is a lump sum, usually 10–40% of the car's price, that you owe at the end of the finance term. It lowers your monthly instalment, but you pay interest on that amount for the whole term, and you need to settle or refinance it at the end. Many South Africans end up refinancing the balloon and paying interest twice.
Try setting the balloon above to 0% and then 30% to see the difference in total interest.
Tips before you finance a car
Stick to 60 months or less if you can. Longer terms mean far more interest, and you may owe more than the car is worth. Budget for comprehensive insurance, which banks require on financed cars, plus fuel and services. A common rule is to keep total car costs under about 20% of take-home pay.
Frequently asked questions
What interest rate will I get on car finance?
It depends on your credit profile. Rates are usually quoted relative to prime, typically from prime to prime + 5%. A bigger deposit and good credit history get you better rates.
Is a balloon payment a good idea?
Only if you have a clear plan to pay it off, for example by saving monthly or by selling the car when the balloon is due. Otherwise it usually makes the car more expensive overall.