When you are shopping for a Suzuki, it is easy to look at the monthly instalment and decide whether you can afford it. But that number is only part of the story. The terms behind the instalment can affect how much you pay each month and how much your Suzuki costs you in the long run.
Let’s say you are looking at a Suzuki priced at R250 000. If you finance the full amount, your monthly instalment will depend on factors such as the interest rate, repayment period, deposit, and whether you choose a balloon payment. This is why two people buying the same Suzuki can end up with different monthly repayments.
The repayment term is how long you have to pay off the finance. A 60-month term means 5 years of repayments, while a 72-month term spreads the payments over 6 years. Choosing a longer term can reduce the monthly amount, but you are likely to pay more interest over the full period.
A deposit can work in your favour. If you put down R30 000 on a R250 000 Suzuki, you only need to finance the remaining R220 000, depending on the finance agreement. Borrowing less can reduce your monthly instalment and the interest charged.
You may also be offered a balloon payment. This leaves a larger amount owing at the end of the agreement in exchange for lower monthly repayments. For example, you might be comfortable with an instalment of R5 500 rather than R6 500, but the lower payment could mean you have a sizeable final amount to settle later.
The interest rate matters too. A higher rate can push up your monthly instalment and the total amount you repay. If the rate is variable, changes to the applicable rate can also affect your repayments.
There are other costs to consider, including finance fees, insurance, fuel, servicing and licensing. That is why the best finance option is not always the one with the lowest monthly instalment.
Before signing your finance agreement, look at the full picture. Know how much you are borrowing, what you will pay each month, how long you will be paying, and whether there will be a final balloon payment. Alternatively, you can visit Suzuki Johannesburg South and let our amazing team help you with your finance!
Let’s say you are looking at a Suzuki priced at R250 000. If you finance the full amount, your monthly instalment will depend on factors such as the interest rate, repayment period, deposit, and whether you choose a balloon payment. This is why two people buying the same Suzuki can end up with different monthly repayments.
The repayment term is how long you have to pay off the finance. A 60-month term means 5 years of repayments, while a 72-month term spreads the payments over 6 years. Choosing a longer term can reduce the monthly amount, but you are likely to pay more interest over the full period.
A deposit can work in your favour. If you put down R30 000 on a R250 000 Suzuki, you only need to finance the remaining R220 000, depending on the finance agreement. Borrowing less can reduce your monthly instalment and the interest charged.
You may also be offered a balloon payment. This leaves a larger amount owing at the end of the agreement in exchange for lower monthly repayments. For example, you might be comfortable with an instalment of R5 500 rather than R6 500, but the lower payment could mean you have a sizeable final amount to settle later.
The interest rate matters too. A higher rate can push up your monthly instalment and the total amount you repay. If the rate is variable, changes to the applicable rate can also affect your repayments.
There are other costs to consider, including finance fees, insurance, fuel, servicing and licensing. That is why the best finance option is not always the one with the lowest monthly instalment.
Before signing your finance agreement, look at the full picture. Know how much you are borrowing, what you will pay each month, how long you will be paying, and whether there will be a final balloon payment. Alternatively, you can visit Suzuki Johannesburg South and let our amazing team help you with your finance!
