Car finance and balloon payment calculator

Dealers quote the monthly. This car finance calculator prices the whole deal: the instalment, the NCA fees, the total interest, the legal rate ceiling, and the lump sum a balloon leaves you owing.

A balloon makes the monthly look cheaper by deferring part of the price. It isn't a discount. Interest runs on the full balance, balloon included, for the whole term, and when the term ends you still owe that lump sum in cash. Pay it, refinance it, or hand the car back. Those are the three exits, and knowing the number before you sign is the point of this page. The tool flags a balloon above the roughly 35% of price lenders allow, and warns that a 96-month term won't take one at all.

What to enter:

  • the car price, your deposit and any balloon, in rand
  • the term, your credit band and the rate
  • the NCA initiation fee and monthly service fee, seeded with defaults worth checking against your quote
  • fuel, insurance and upkeep on the shared Running costs card

The headline is the monthly instalment, with the total paid over the term and the total interest beside it. A true-cost strip lays the whole deal against the sticker price: deposit, amount financed, all interest, all service fees. Set a balloon and a dedicated card spells out the trade, showing how much cheaper it makes the instalment, how much extra interest that costs, and the lump sum still outstanding at the end.

The owe-versus-worth chart is worth a minute. It tracks your loan balance against the car's falling value and marks the month you climb above water, which on a long term with a balloon can be a long way in. The full-monthly-cost cards add fuel, insurance and upkeep, with a cost per kilometre against the SARS rate.

Two honest limits: resale value follows a typical SA depreciation curve your exact model won't match, and the NCA fee defaults come from secondary sources rather than the gazette. Use your quote where you have one.

Questions

What is the maximum interest rate on car finance in South Africa?

The National Credit Act caps the rate on a vehicle instalment sale at the repo rate plus 17 percentage points. With the repo rate at 7.25%, the cap is 24.25% a year.

How big can a balloon payment be?

Lenders usually cap a balloon at about 35% of the car's price, and a 96-month term normally takes no balloon at all. Interest runs on the full balance, balloon included, for the whole term, and the balloon is still owed as a lump sum at the end.

What fees does the car finance calculator include?

It starts with an initiation fee of R1,207.50 and a monthly service fee of R69, which are R1,050 and R60 plus 15% VAT. Check both against the figures on your quote.

Money Cat is an information tool, not financial advice. Confirm any figure that matters with your bank, lender or a registered professional.