Calculate vehicle finance with balloon payments, deposits, and accurate interest rates. Compare new vs used car financing options for SA buyers.
Calculate vehicle finance with balloon payments
Typically 10-20% of vehicle price
Current prime rate: 11.75% (typical range: prime to prime+5%)
Lower monthly payments, but lump sum due at end
Lower monthly payments but you owe a lump sum at the end. Great for cash flow, but you pay more interest overall. Maximum 40% balloon allowed in SA.
Larger deposit = lower monthly payments and less interest. Banks may offer better rates with 20%+ deposit. Also reduces risk of being "upside down" on your loan.
New cars: Lower interest rates (prime to prime+2%). Used cars: Higher rates (prime+3% to prime+5%). New cars depreciate ~20% in year 1.
Remember: Vehicle finance is secured against the car. If you miss payments, the bank can repossess. Budget for insurance, maintenance, fuel, and license fees on top of your monthly payment.
Vehicle finance is a secured loan where the car serves as collateral. Interest rates are typically lower than personal loans, and you can choose between instalment sale (you own the car from day 1) or lease agreements (bank owns the car).
Prime rate to prime+2% (11.75% - 13.75%)
Prime+2% to prime+5% (13.75% - 16.75%)
Up to 40% balloon, due at end of term
6 years maximum repayment term
You own the car from day 1. Most common for private buyers. Interest deductible for business use.
Bank owns the car. Lower monthly payments. Popular for businesses (VAT and full costs deductible).
Higher rates but easier approval. Good for buyers with poor credit scores.