Car finance calculator
Monthly instalment on vehicle finance, with or without a balloon payment, including the fees the National Credit Act allows. Prime is 10,75%.
Monthly instalment
R 7 084per month
For 72 months on a R 361 208 loan at 11,75%. Interest over the loan: R 143 858.
- Loan R 361 208
- Interest R 143 858
- Fees R 6 176
The deal in full
| Vehicle price | R 400 000,00 |
| Less deposit | −R 40 000,00 |
| Initiation feeNational Credit Act maximum, incl. VAT, added to the loan | R 1 207,50 |
| Amount financed | R 361 207,50 |
| Instalment | R 7 014,80 |
| Monthly service fee (NCA maximum, incl. VAT) | R 69,00 |
| 72 payments of R 7 083,80 | R 510 033,96 |
| Total cost of the car, incl. deposit and trade-in | R 550 033,96 |
Compare balloon options
| Balloon | Monthly | Total interest |
|---|---|---|
| None | R 7 084 | R 143 858 |
| 10% (R 40 000) | R 6 699 | R 156 128 |
| 20% (R 80 000) | R 6 314 | R 168 397 |
| 30% (R 120 000) | R 5 928 | R 180 666 |
| 35% (R 140 000) | R 5 736 | R 186 801 |
How a balloon payment works
A balloon (or residual) is a lump sum you agree to pay at the end of the loan. Because part of the loan is pushed to the end, your monthly instalment is lower. But you pay interest on the balloon for the whole term, so the car costs more overall.
When the balloon falls due, you need to pay it in cash, refinance it, or trade the car in. Cars lose value quickly, so the car may be worth less than the balloon by then. Banks usually allow a balloon of up to about 35% to 40% of the price.
The fees on a car loan
The National Credit Act caps what a lender may charge. For vehicle finance, the initiation fee is at most R165 plus 10% of the amount above R1 000, up to R1 050, plus VAT: R 1 207,50 on almost every car loan. The monthly service fee is at most R60 plus VAT: R 69,00.
Not included here: comprehensive insurance (required by the bank), credit life cover, and any extras sold with the car. Ask for a pre-agreement quote, which by law must show every cost.
Read the guide: Balloon payments on car finance: are they worth it?