The Suzuki S-Presso 1.0 GL is SA's cheapest new car - it retails for R152 900. Should you not need the ride height and want something more hatch-like, the Celerio 1.0 GA is just a few bucks more at R153 900. (It's a solid little car that drives well; my colleague Chad Lückhoff always recommends it.)
To find the cheapest possible repayment for our entry-level S-Presso model, we need to open our Car Finance Calculator. Here you will see a number of variables that all play a large part in how cheap or how expensive a car will be, month to month.
If you have no deposit to put down, your monthly repayment is going to be higher. If you opt for a balloon payment, your monthly repayment is cheaper, but then you have to pay even more at the end of your finance agreement, so these things all need to be taken into consideration.
Personally, I would never opt for a balloon payment because it would be like a sword hanging over my head. Unless you know for sure that you stand to inherit something from that uncle in Nigeria.
So, here's how we did the math...
*Pricing was correct at the time this article was published. Please visit Suzuki SA for the latest prices.
Verdict
Without a balloon payment, and with zero deposit, over 72 months, the lowest monthly repayment would be R2 775, based on an estimated interest rate of 9.25% (the prime rate of 7.25% plus two - but remember that it also depends on your credit rating how much your interest rate will be).
As it stands, your total interest is a whopping R46 908, however. A bit shocking, isn't it?
Always save for that deposit, if you can!
To avoid this mammoth amount of interest, it's always better to save and put down a deposit. Or perhaps you have a family member who will agree to loan you the deposit interest-free? Either way, new cars are expensive, so look out for a used model on AutoTrader that has already depreciated somewhat.
