How this calculation works
The amount financed is purchase price minus deposit and net trade-in, plus the initiation fee. The monthly annuity leaves the selected residual due at the end. The final schedule payment includes the remaining balance. Extra repayments reduce that balance and may settle it sooner.
A worked example
For a R300 000 vehicle with no deposit and a 20% balloon, the target residual is R60 000. At 0% over 60 months, regular principal repayments are R4 000, with the R60 000 residual also due at the end.
Assumptions & limitations
- A balloon lowers regular repayments but leaves a large final amount. You must arrange funds for it; refinancing is not guaranteed.
- The balloon is a percentage of the vehicle price, not the financed amount. Extra payments reduce the actual final settlement.
- Insurance stays outside the financed balance. Estimated outlay includes deposit and trade-in equity as an economic contribution. Actual lender and applicant terms differ.

