Question 1

What is a balloon payment?

Accepted Answer

A balloon payment is a large, lump-sum payment due at the end of a loan term. Including a balloon payment in your vehicle finance agreement lowers your monthly repayments, but you will owe a significant amount at the end of the term.

Question 2

How is vehicle finance interest calculated?

Accepted Answer

Interest on vehicle finance is typically calculated on the remaining balance of the loan. Our calculator uses the provided annual interest rate (%) and converts it to a monthly rate to accurately estimate your repayments based on the principal debt, which is the vehicle price minus your deposit.

Question 3

Can I get vehicle finance with no deposit?

Accepted Answer

Yes, it is possible to get 100% financing with no deposit, but this depends on your credit profile and the lender's criteria. A deposit reduces your loan amount, lowers your monthly repayments, and can help you secure a better interest rate.

Vehicle Finance Calculator