Loans & Credit
Car Finance Calculator South Africa 2026
Work out your monthly vehicle finance instalment with balloon payment, deposit and residual value options — and see the total cost of credit on new and used cars.
✓ Updated with 2026 rates•✓ Free & no sign-up•✓ Instant results
Car finance repayment
Live estimate · balloon & deposit · 2026
R
Cash price of the car
R
Typically 10–20% of the price
Prime is 11.75% — typically prime to prime + 5%
Lower monthly payments, but a lump sum is due at the end (max 40%)
Monthly payment
R8 113
for 60 months at 11.75% p.a.
Vehicle price
R350 000
Deposit
R35 000
Balloon due at end
R0
Total interest & fees
R136 779
Initiation fee
R1 208
Total cost of vehicle
R486 779
Financing a R350 000 car over 60 months at 11.75% p.a. after a R35 000 deposit costs about R8 113 per month, or R486 779 in total including comprehensive insurance.
Vehicle finance fees & rates (South Africa)
- Initiation fee: R1,207.50 (NCR-capped, once-off)
- Monthly service fee: maximum R69/month
- New cars: prime to prime + 2% · Used cars: prime + 2% to prime + 5%
- Balloon payments allowed up to about 40% of the price
Vehicle finance is secured against the car — miss payments and the bank can repossess. Your actual rate depends on your credit score, deposit and the vehicle. This is an independent estimate, not a quote.
How does car finance work in South Africa?
Vehicle finance is a secured loan where the car serves as collateral. You can choose an instalment sale agreement (you own the car from day one) or a lease agreement. A balloon payment, or residual value, lowers your monthly instalments but is due as a lump sum at the end of the term.
New cars
Typically prime to prime + 2% (roughly 11.75% – 13.75% at current rates), reflecting lower lender risk.
Used cars
Usually prime + 2% to prime + 5% (roughly 13.75% – 16.75%), as older vehicles carry more risk.
Balloon option
Defer up to around 40% of the price to the end of the term to lower instalments — but it falls due as a lump sum.
Maximum term
Terms run up to 72 months (6 years). A longer term lowers monthly payments but raises total interest.
Car finance options & the balloon payment
Instalment sale agreement
You own the car from day one — most common for private buyers. Interest may be deductible for business use.
Lease agreement
The bank owns the car, giving lower monthly payments. Popular with businesses, where VAT and running costs can be deductible.
Rent-to-own
Higher rates but easier approval — an option for buyers with a weaker credit profile.
The balloon payment trade-off
A balloon lowers your monthly instalment but you pay interest on it for the full term and must settle the full lump sum at the end. Plan how you will cover it — cash, refinancing or selling the car.
What drives your monthly instalment
Deposit
A larger deposit reduces the amount financed, lowering both your instalment and total interest, and can improve your rate.
Interest rate
Linked to prime plus a margin set by your credit score, deposit and the vehicle. Even 1% makes a meaningful difference over the term.
Term length
Longer terms cut the monthly payment but increase the total interest you pay over the life of the agreement.
Total cost of credit
Interest, monthly service fees and the once-off initiation fee all add to what you repay above the cash price.
Additional costs to budget for
Compulsory cover
Comprehensive insurance is required by the bank, plus any credit life insurance on the agreement.
Running & once-off costs
Licence and registration fees, fuel and maintenance, a tracking device if required, and any optional extended warranty.
Frequently asked questions
Quick answers to the most common questions.
How is a car finance instalment calculated in South Africa?
Your monthly instalment is based on the amount financed (the price less any deposit), the interest rate (linked to the prime rate plus a margin set by your credit profile) and the term, usually up to 72 months. The bank amortises the loan, so each instalment covers interest plus a portion of the capital. A longer term lowers the monthly payment but increases the total interest you pay.
What is a balloon payment on car finance?
A balloon payment (also called a residual value) is a lump sum, often up to 35–40% of the vehicle price, deferred to the end of the finance term. It reduces your monthly instalments because you are financing less of the capital each month, but the full balloon amount becomes due as one payment at the end — you must settle it, refinance it, or sell the car to cover it. You also pay interest on the balloon for the whole term, raising the total cost.
How does a deposit affect my car finance?
A deposit reduces the amount you need to finance, which lowers both your monthly instalment and the total interest paid over the term. A larger deposit can also help you qualify for a better interest rate and reduces the risk of being in negative equity (owing more than the car is worth) early in the agreement.
What interest rates apply to vehicle finance in South Africa?
Rates are linked to the prime lending rate plus a risk margin. New cars typically attract rates from around prime to prime + 2%, while used cars are higher, often prime + 2% to prime + 5%, because they carry more risk. Your actual rate depends on your credit score, deposit, the vehicle and the lender (such as WesBank, MFC, Absa or Standard Bank).
What is the total cost of credit on car finance?
The total cost of credit is everything you pay above the cash price of the car: interest, the monthly service fee, the once-off initiation fee and any compulsory insurance or extras. Choosing a longer term or a large balloon lowers the monthly instalment but increases this total. Always compare the total amount repayable, not just the monthly figure.