Work out your monthly vehicle instalment, including a balloon payment if you want one.
At an illustrative fixed annual rate of 12.5%, a R350,000 vehicle with no deposit and no balloon has a calculated monthly instalment of R 6 933,91. This excludes initiation fees, service fees and insurance.
Calculate monthly interest on the amount financed, allowing for the present value of any balloon that remains payable at the end of the term.
A balloon reduces monthly instalments but leaves a final lump sum. This is a repayment estimate, not an affordability assessment or credit approval.
Reference: National Credit Regulator. Examples are calculated by Randwise, not quoted from the reference.
A balloon is a lump sum you pay at the end of the loan. It lowers your monthly instalment, but you pay more interest overall and you'll need cash (or to refinance) when the term ends.
The figures don't include insurance, the initiation fee or the monthly service fee.