![]() Mercedes-Benz’s ‘Agility Finance’ is a prime example of this. Car Loan EMI Calculator by Axis Bank: Check out our Auto Loan/Car Loan EMI calculator to quickly find out your monthly installment. The big benefit of a residual is that if you don’t want to buy the car at the end of the lease, and you stayed within the mileage/condition limits, you can return the car to the third party. A higher residual value translates to lower monthly instalments for the buyer. ![]() It’s a value that a third party (such as the dealer, OEM, or bank) guarantees the car will be worth at the end of its lease and is calculated by determining how much the car will depreciate over the course of the lease. Your options at this point in time will be to settle, trade in your vehicle, or refinance the outstanding amount.A residual applies to car leasing. It means it might be an option if your financial profile doesn’t fit the types of borrowers that mainstream mortgages are designed for. This doesn’t mean a balloon mortgage is a good idea if your finances are unstable. CALCULATE YOUR HIRE PURCHASE WITH BALLOON PLAN. The downside to balloon payments is that at the end of the contract, an amount of R90 000 will still be owed on the car. A balloon mortgage may be an option for certain borrowers that don’t qualify for conventional financing. HOW IT WORKS Down payment + low monthly payments + balloon payment. Interest will be calculated on the full outstanding amount. ![]() In other words, you will only pay the monthly instalment on the R210 000 (R300 000 minus R90 000), which makes it much more affordable. Let’s say you buy a car for R300 000 with a balloon of 30% (R90 000), the R90 000 will only be payable at the end of the contract as your last instalment. ![]() A balloon payment is where a portion of the total value of the car is only due at the end of the contract. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |