Car Finance Calculator

Calculate your next car instalment

Use our car finance calculator to work out your monthly instalments

The first step in buying a new car is setting your budget. You’ll be driving your new baby for years to come, so you need to consider your current and future expenses when calculating your budget. If you plan on getting vehicle finance, use our online finance calculator to help work out what you can afford and what your estimated monthly instalments will be.

Tips to Reduce Your Monthly Car Repayments

Owning a vehicle in South Africa can be both a luxury and a necessity. With the fluctuating fuel prices and maintenance costs, it's essential to ensure that your monthly car finance repayments are manageable. Here are some tips and insights to help you navigate your car finance journey:

  1. Balloon Payments: Consider paying a lump sum at the end of your finance term to reduce your monthly instalments. This is known as a balloon payment or residual value. However, it's crucial to plan for this payment to avoid financial strain later.

  2. Down Payment: The larger the deposit or down payment you make when purchasing your vehicle, the lower your monthly instalments will be. This reduces the total amount you need to finance and can lead to savings in interest over the loan term.

  3. Shop Around: Different financial institutions offer varying interest rates. Use a car finance calculator to compare monthly repayments from different lenders. This will help you find the best deal tailored to your budget.

  4. Shorter Loan Term: While longer loan terms might offer smaller monthly instalments, they often come with higher interest rates. Opting for a shorter loan term can save you money in the long run.

  5. Maintain a Good Credit Profile: Your credit profile plays a significant role in determining your interest rate. A good credit score can help you secure a lower interest rate, reducing your monthly repayments.

  6. Consider Pre-owned Vehicles: New cars depreciate quickly. By opting for a slightly used vehicle, you can get more value for your money and potentially reduce the amount you need to finance.

Why Reducing Your Monthly Repayments is Important

  • Financial Flexibility: Lower monthly repayments give you more room in your budget for other essential expenses or savings.

  • Less Financial Stress: Knowing you have manageable repayments can reduce financial anxiety and help you enjoy your vehicle more.

  • Avoiding Debt: By ensuring your repayments are within your means, you reduce the risk of falling behind and accumulating debt.

Remember, your final interest rate on instalments, as well as your balloon payment or residual value, are subject to a range of factors. These include your credit profile, any payable deposit, the age of the vehicle, and loan term. Always use a car finance calculator to get a clear picture of your potential repayments and make informed decisions.

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