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“It’s important to remember, however, that the amount set aside at the start of the deal is the buyer’s responsibility and will need to be settled.”Balloons are designed to help ease the burden of monthly expenses, but the luxury of lower repayments every month does come with a great deal of responsibility for the buyer.
Gaoaketse also advises customers to consider much more than only monthly repayments when calculating vehicle finance affordability.
Depending on the finance deal structure, a break even point may come sooner or later during your term, with sooner always the goal. By nature, balloon payments will push your break even point to a later date within a loan period.EUGENE COETZEE
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