Mazda News & Events | Car Installments Explained

by Admin |


Car installment calculations in South Africa typically involve a few key factors, and the process may vary slightly among different financial institutions or lenders. Here's a general overview:

car installments explained 2

  1. Loan Amount: This is the total amount you borrow to purchase the car. It includes the vehicle's purchase price, plus any additional costs such as warranties or service plans.
  2. Interest Rate: The interest rate is the percentage charged on the loan amount. It represents the cost of borrowing and can vary based on factors like your credit score, the loan term, and current market conditions.
  3. Loan Term (Repayment Period): This is the duration over which you'll repay the loan. In South Africa, car loan terms typically range from 12 to 72 months, although longer terms may be available for certain financing options.
  4. Monthly Repayment: The monthly installment is calculated using a formula that considers the loan amount, interest rate, and loan term. The formula takes into account the interest being charged over the repayment period.
  5. Deposit (if applicable): If you make a deposit upfront, it will reduce the loan amount, potentially lowering your monthly repayments.
  6. Balloon Payment (if applicable): Some financing options allow for a balloon payment, where a lump sum is paid at the end of the loan term. This can reduce monthly payments but results in a larger final payment.
  7. Credit Profile: Your credit score and financial history play a significant role in determining the interest rate you'll be offered. A higher credit score may result in a lower interest rate.

It's essential to consider all these factors when calculating car installments. Many financial institutions provide online calculators or offer assistance from their financial consultants to help you understand and estimate your monthly repayments based on your specific circumstances. Always review the terms and conditions, including any additional fees or charges, before finalising a car finance agreement.

Mazda Finance offers several unique finance options including Mazda ASSURED and Mazda SECURED to make owning a new vehicle more affordable. Choose a vehicle of your choice, then select one of our tailored Mazda finance solutions to match your unique monthly repayment needs.

MazdaCare will also help you take care of your Mazda with assistance in service plan or warranty extensions.

Learn more at Mazda Finance