The monthly cost of financing R 700 000
At 12.75% over 60 months the instalment on R 700 000 is R 15 837.71. The example rate is prime of 10.75% plus 2 percentage points. Your own rate is set by the lender and depends on your credit record, the deposit and the vehicle, so treat this as an illustration.
In the first year you pay R 190 053, of which R 83 146 is interest. Over the full term the interest adds 35.8% to the price you financed.
How it is worked out
- Amount financed: R 700 000 with no deposit, trade-in or balloon payment.
- Monthly rate: 12.75% a year ÷ 12 = 1.0625% a month.
- Number of payments: 60.
- Instalment: the level payment that clears the loan after 60 payments is R 15 837.71.
- Total repaid: R 15 837.71 × 60 = R 950 263, so interest is R 250 263, or 35.8% of the price.
What a different term does
A longer term lowers the monthly instalment and raises the total interest. A shorter term does the opposite.
| Term | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|
| 48 months | R 18 693 | R 197 240 | R 897 240 |
| 60 months | R 15 838 | R 250 263 | R 950 263 |
| 72 months | R 13 960 | R 305 097 | R 1 005 097 |
What a deposit does
Paying 20% upfront, which is R 140 000, reduces the amount financed to R 560 000 and the instalment to R 12 670, and cuts total interest to R 200 210.
| Deposit | Amount financed | Monthly instalment | Total interest |
|---|---|---|---|
| No deposit | R 700 000 | R 15 838 | R 250 263 |
| 10% (R 70 000) | R 630 000 | R 14 254 | R 225 236 |
| 20% (R 140 000) | R 560 000 | R 12 670 | R 200 210 |
Cars near R 700 000
| Vehicle price | Monthly instalment | Total interest | Total repaid |
|---|---|---|---|
| R 450 000 | R 10 181 | R 160 883 | R 610 883 |
| R 500 000 | R 11 313 | R 178 759 | R 678 759 |
| R 600 000 | R 13 575 | R 214 511 | R 814 511 |
| R 700 000 | R 15 838 | R 250 263 | R 950 263 |
| R 800 000 | R 18 100 | R 286 014 | R 1 086 014 |
| R 1 000 000 | R 22 625 | R 357 518 | R 1 357 518 |
A car that costs R 100 000 more, at R 800 000, adds R 2 263 to the monthly instalment; one that costs R 100 000 less, at R 600 000, takes R 2 263 off it.
Assumptions
- Interest at 12.75% a year, compounded monthly, over 60 months. This is an example rate, not an offer.
- No balloon payment, trade-in, initiation fee or monthly service fee. Those raise the real cost and can be added in the full calculator.
- Insurance, licensing, fuel and servicing are not included.
Work it out for your own numbers
This page uses fixed example inputs. To change the figures, use the full car finance calculator. It recalculates as you type and nothing you enter leaves your browser.
More prices
- Lower: R 600 000
- Higher: R 800 000
- All amounts: Car finance