My friend got a ballon payment and pays it off with a lump sum every year when she gets her bonus. I think it's been a good example of how to manage a ballon payment.
I bought a i20 in 2015 and didn't even know about balloon payment, it was 60 000 was really stressed to think I was going to pay 5 years and after that I need to pay 60 000, my advice whether u have big family or not don't buy a car that you can't afford there are alot of second hand reliable cars out there don't buy a car on balloon payment finished.
Thank you for this video Mabaso. I think most of us, myself included, fall into this trap because of not reading the documents when we purchase these vehicles. Excitement rules over logic and chemical reactions in the body cloud sound judgement, later when you sit and review, only then does one find that a baloon clause was inserted in the contract. Dealers are not saints, they prey over the ignorant first time buyers, especially when you're pressured to sign on the dotted line. 😅 Now I know better thanks to experience.
Hi Nokuhle! Just a small corrections, when you trade in your car, the balloon doesn't disappear or gets transferred to the person buying your car. It's actually a bit more complicated. I'll try and simplify it by saying, it depends on what you owe (balance on the car) versus what the value of the car is at the time of trade in. Sometimes you break even and some dealership load the outstanding balance of your trade in to the new car ( this is not allowed but the banks sometimes can't tell and you also can't tell).
Yes, I was about to say the same thing. They load the shortfall from your current vehicle that you're about to trade in, onto your new vehicle.. And sometimes that will also increase the instalment.
I came across this video as I was thinking about my balloon payment. Mina I took the ballon payment route because I didn’t think I was going to keep the car, and guess what? I kept it. I will be paying this balloon payment in 3 months, luckily I saved some money for it.
😂☹️ I know what it feels like just consuming stressful content. I mean it’s good because it makes you aware of the hot mess you’re in, but often people just leave you hanging and now it’s like “Okay you’ve stressed me, now what ????”. Glad I was able to provide solutions 😂🙏🏾.
I know who you are talking about, she just went on and on, on how it's a problem blah blah blah, I mean I clicked on her video for a solution 😑😑. I'm glad I came here🙏🏾
Another option which worked for me was that I added an extra amount every month depending on how much I had to spare. I informed the finance house to never reduce my installments regardless of interest cuts. This automatically decreases the capital.
Wow thank you. I have a balloon payment and I had no idea what it was. I’m actually struggling with my car payments as the interest rates keep increasing and the instalment is getting higher 😭. Thank you so much for the vid
My little 2 cent, save the money in your 32 days notice account. You might end up losing money if you pay it towards your ballon to the bank straight if your car is written off or stolen, meaning your insurance/shortfall cover goes to waste and that’s a service you are paying for.
Ballon payments are the best option for me, since the Ballon amount doest not gain any interest over the 5 years, so if your Ballon is 36% that's 36% of your car you don't pay interest on. The difference on the installments is normally like R1000-R1500 when compared to straight finance, I just save the difference every month in 5 years time I'll have more then 60k to pay of my Ballon. Also if you trade is your car after 3 years, the car will be settled in full, the Ballon doesn't fall on to anybody else, just make sure the dealership gives u the best deal they can on your trade in value, or rather sell the car to we buy cars, if the car is in great condition they will give u enough money to settle the bank and the Ballon and u might even get a nice rebate.
If you start earning a higher salary you can split your balloon payment for the remainder of the term, meaning you will be payment a higher monthly installment. Come end of the term, you don't pay any once-off lumpsum.
Very informative video as always Noku. also @ 5:40 maybe it would be cool to note that when you trade in your car, there will be a higher short fall expected in cash as opposed to smaller short fall from some who didn't have balloon. I stand to be corrected though...
I didn’t experience that and my first car had a balloon payment 🙏🏾. It’s all about the timing of your trade in and what the market value of your car is vs what you owe the bank.
"Just like Deposit at the end" - Balloon payment, I was thinking balloons all this time. I was like: I will refuse them, I don't need balloons on my car.
Is it possible to reduce balloon Payment with a lumpsum until you finish it off , the second question , should I inject a lumpsum of cash to my car baalnce or direct those funds into quicker car payment , please advise. I have saved some cash that is more than R50000 and my car balance is R300000 including baloon payment. My baloon payment is R136000.
What happens when you settle the car,3 or four years down the line 🤔. Not wait for the 72 or 60 months when u do take balloon to lower your installment
Your insurance should be able to cover the amount you owe however in some cases they can’t, and that’s when people get the additional short-fall cover.
Does it work the same for a ballon mortgage? Can I pay the principal before the 5yr paytime? Will the bank let me do that or is there a fee for giving extra money to the principal?
The bank will more likely suggest it (because they make money off of it). They have to inform you of it though, but the salesperson usually brushes over it very quickly .
Can I ask the bank to reduce the interest charged on my car repayment , to the original interest , since covid my interest have increased radiculously and i am frustrated hence I began saving in order to finish off the car early /
Hey Nokuhle, I’m still confused so I’m looking to buy a car next year so if I buy it and ask the finance from the bank but with no ballon so that means I will need to pay a deposit upfront? I’m talking about a car ranging from R150K-R200k?
Balloon payment is clear sign you can not afford the car rather go for something you can afford to pay the installment, imagine after drving the car for a 4 years then you still have to pay 50-100k at the end of your term where you have to sell your car or get a loan to pay that money,
If you watched the video you’ll see that I did make mention that some people need to get customised / different cause to suite special needs. Very easy to apply a blanket approach like what you did - when you forget that we lead different lives with different needs. A balloon payment is never something one should go for, but it’s there as an option and this video is to help those already in them.
@@nokuhlekumalo I used to be a sales person for a dealer and I can tell you the amount of people who took balloon payment either had the cars repossessed before the end of the term let alone others took out loans or refinanced in order to pay the balloon, in my experience I would advise everyone to stay away from a balloon payment and just save enough money or go for a pre-owned vehicle, remember this is a public platform and people other than myself will come across this and criticize your advise 😉
It depends , if you really like the car then don't go for balloon and vice versa go for balloon. It also depends how you look at cars , for me I feel like you shouldn't have a car for more than 4 years, so balloon works for me. High end brands are smart now they offer future value deals. For instance BMW would say in 4 years time we guarantee you that your car will be 430k example. When you do your calculations you break even or have a surplus.
Well that’s if you still decide to choose balloon option on your next one. Usually people have a deposit saved or they use the profit from selling the old car to fund their deposit (or hopefully by the time you’re upgrading your car you can afford a higher installment so you don’t need a balloon payment at all).
You might win the lotto and you might get money left is such terrible financial advice lol you made some good points but man those 2 are just terrible pieces of advice.
My friend got a ballon payment and pays it off with a lump sum every year when she gets her bonus. I think it's been a good example of how to manage a ballon payment.
😩🔥 what a smartie!! Definitely saving herself from stress in the future.
Awesome. This is a good investment. ua-cam.com/users/shorts0iX9c4zM69s?feature=share
I'm literally almost 30 and I'm finally grasping this concept now from your video - you deserve your flowers Nokuhle
I bought a i20 in 2015 and didn't even know about balloon payment, it was 60 000 was really stressed to think I was going to pay 5 years and after that I need to pay 60 000, my advice whether u have big family or not don't buy a car that you can't afford there are alot of second hand reliable cars out there don't buy a car on balloon payment finished.
Thank you for this video Mabaso. I think most of us, myself included, fall into this trap because of not reading the documents when we purchase these vehicles. Excitement rules over logic and chemical reactions in the body cloud sound judgement, later when you sit and review, only then does one find that a baloon clause was inserted in the contract.
Dealers are not saints, they prey over the ignorant first time buyers, especially when you're pressured to sign on the dotted line. 😅
Now I know better thanks to experience.
You have such a simple way of explaining anything and everything. Love your content!!
Right!! Sis breaks it down for us🙌🏽
Thank you so much for this 🥺♥️!! Glad I can make things simple.
I know, right?! This lady is officially my favourite :)
Awesome. This is good.ua-cam.com/users/shorts0iX9c4zM69s?feature=share
Your field is in teaching. You are such a beautiful teacher. Extremely understandable.
God bless you❤
🥺🥺♥️ thank you so much sis. I greatly appreciate this.
This was great advice. The idea of a balloon payment has always sounded so scary to me. Glad to hear that there are options ❤️
Hi Nokuhle! Just a small corrections, when you trade in your car, the balloon doesn't disappear or gets transferred to the person buying your car. It's actually a bit more complicated. I'll try and simplify it by saying, it depends on what you owe (balance on the car) versus what the value of the car is at the time of trade in. Sometimes you break even and some dealership load the outstanding balance of your trade in to the new car ( this is not allowed but the banks sometimes can't tell and you also can't tell).
Yes, I was about to say the same thing. They load the shortfall from your current vehicle that you're about to trade in, onto your new vehicle.. And sometimes that will also increase the instalment.
Does balloon payment amount gain interest or fixed amount for that 5 years ?
@@karabomuroa7396 It's a fixed amount.
I came across this video as I was thinking about my balloon payment. Mina I took the ballon payment route because I didn’t think I was going to keep the car, and guess what? I kept it. I will be paying this balloon payment in 3 months, luckily I saved some money for it.
I love that you give us solutions. Was listening to another one all she does is stress us out. This was very informative
😂☹️ I know what it feels like just consuming stressful content. I mean it’s good because it makes you aware of the hot mess you’re in, but often people just leave you hanging and now it’s like “Okay you’ve stressed me, now what ????”.
Glad I was able to provide solutions 😂🙏🏾.
I know who you are talking about, she just went on and on, on how it's a problem blah blah blah, I mean I clicked on her video for a solution 😑😑. I'm glad I came here🙏🏾
Another option which worked for me was that I added an extra amount every month depending on how much I had to spare. I informed the finance house to never reduce my installments regardless of interest cuts. This automatically decreases the capital.
Wow thank you. I have a balloon payment and I had no idea what it was. I’m actually struggling with my car payments as the interest rates keep increasing and the instalment is getting higher 😭. Thank you so much for the vid
My little 2 cent, save the money in your 32 days notice account. You might end up losing money if you pay it towards your ballon to the bank straight if your car is written off or stolen, meaning your insurance/shortfall cover goes to waste and that’s a service you are paying for.
Greatly advice
I beg to differ, I thought the insurance pays according to the value of your car not what you are owing the bank
Ballon payments are the best option for me, since the Ballon amount doest not gain any interest over the 5 years, so if your Ballon is 36% that's 36% of your car you don't pay interest on. The difference on the installments is normally like R1000-R1500 when compared to straight finance, I just save the difference every month in 5 years time I'll have more then 60k to pay of my Ballon.
Also if you trade is your car after 3 years, the car will be settled in full, the Ballon doesn't fall on to anybody else, just make sure the dealership gives u the best deal they can on your trade in value, or rather sell the car to we buy cars, if the car is in great condition they will give u enough money to settle the bank and the Ballon and u might even get a nice rebate.
Had someone at a dealership tell me this. Made me a fan of balloon
Never saw it like that
Always coming with solutions and not problems love it ❤️❤️❤️
Shout out to daddy 🙌 This is very informative Kuhle 👏👏❤️
🕺🏾🕺🏾🕺🏾 shout out to my fountain of knowledge!! 🤣 pretty sure he’s going to start charging me soon.
Glad I could help ☺️
A bit far from buying my first Car but thank God I came across this now🙏....I Love your content ❤
Love how you keep throwing in the Lotto😂
So informative 🔥
Listen 🤣, I’m going to win the lotto one day I’m convinced. (I just need to actually start playing 🙈)
If you start earning a higher salary you can split your balloon payment for the remainder of the term, meaning you will be payment a higher monthly installment. Come end of the term, you don't pay any once-off lumpsum.
Thank you so much for this I've watched most your videos about cars and i looking so perfect timing thank you 👏😊❤
So insightful sis thank you so much! 🤍
I smashed subscribe before you even finished
Thanks for the information. Really need such information shared. Oooh and Happy Father's day to Bab'Khumalo
Very informative video as always Noku. also @ 5:40 maybe it would be cool to note that when you trade in your car, there will be a higher short fall expected in cash as opposed to smaller short fall from some who didn't have balloon. I stand to be corrected though...
I didn’t experience that and my first car had a balloon payment 🙏🏾. It’s all about the timing of your trade in and what the market value of your car is vs what you owe the bank.
This was well explained. Great content. Thank You for curating such.
Thank you so much for watching & engaging Ukho 🥺♥️. I truly appreciate this.
Just found this video today, really appreciate the info❤
🙏🏾🙏🏾🙏🏾 only a pleasure.
This was informative and simple 🙌🏽
Thank you for watching and engaging 🥺🙏🏾 glad I simplified it.
Wow, u r such a God sent. I needed to know this.Thanks Miss K 👌 💜💜
🙏🏾🙏🏾🙏🏾 so happy I could help!
Goodluck .
I just love your energy.. thanks for sharing the info
Such cool vibes you are. And great insight thanks. I sent this to my mom
Thank you for watching, engaging and sharing 🥺🙏🏾❤️! Truly appreciate this.
Lol, getting a Balloon and hoping to win the lottery is the craziest advice I've ever heard
😂😂😂😂😂
"Just like Deposit at the end" - Balloon payment, I was thinking balloons all this time. I was like: I will refuse them, I don't need balloons on my car.
🤣🤣🤣🤣♥️ this is so cute !
😂😂😂😂😂😂😂 wow
Yhooo thanks sisi you have opened my mind🙏🙏🙏🙏
That bhabhayini was so cool😁
Glad I came across your channel
Loved this video! Thank You Kush
😘♥️♥️♥️
This makes sense now...thank you so much 😀
Great video Noks👋👋👋👋👋
Thank you for watching ♥️
Miss K thank you for the video. When exactly can you trade in the car so that the balloon payment can falls to the next buyer?
So informative 🥺☺️❤️
🥺🤧♥️ wena uthanda mina nje straight. Thank you for engaging mnganami.
Is it possible to reduce balloon Payment with a lumpsum until you finish it off , the second question , should I inject a lumpsum of cash to my car baalnce or direct those funds into quicker car payment , please advise.
I have saved some cash that is more than R50000 and my car balance is R300000 including baloon payment. My baloon payment is R136000.
What happens when you settle the car,3 or four years down the line 🤔. Not wait for the 72 or 60 months when u do take balloon to lower your installment
I love the content of your videos very informative...love love it.keep it up bbs😇😇
Thank you for watching and engaging 🥺🙏🏾
Hi, I have a question. What happens to your Ballon payment when your car is written off due to accident?
Your insurance should be able to cover the amount you owe however in some cases they can’t, and that’s when people get the additional short-fall cover.
This is very informative. Thank you
Glad I could help ☺️👍🏾
Hello Nokunhle, if you want to settle the car does the balloon payment included?
Does it work the same for a ballon mortgage? Can I pay the principal before the 5yr paytime? Will the bank let me do that or is there a fee for giving extra money to the principal?
Let's say you finished paying off the car,you then loose your job and can't pay the Ballon .. Can the bank reposes the car ?
Hi.. I just wanted to find out, Does the bank suggest the balloon payment or is it an option I can take when applying for car financing
The bank will more likely suggest it (because they make money off of it). They have to inform you of it though, but the salesperson usually brushes over it very quickly .
thank u so much they lay to us seller
Can I ask the bank to reduce the interest charged on my car repayment , to the original interest , since covid my interest have increased radiculously and i am frustrated hence I began saving in order to finish off the car early /
Good content..
Number one
Hey Nokuhle, I’m still confused so I’m looking to buy a car next year so if I buy it and ask the finance from the bank but with no ballon so that means I will need to pay a deposit upfront? I’m talking about a car ranging from R150K-R200k?
@@healinghaichnyekelelelegod9693 thank you so much
Balloon payment is clear sign you can not afford the car rather go for something you can afford to pay the installment, imagine after drving the car for a 4 years then you still have to pay 50-100k at the end of your term where you have to sell your car or get a loan to pay that money,
If you watched the video you’ll see that I did make mention that some people need to get customised / different cause to suite special needs.
Very easy to apply a blanket approach like what you did - when you forget that we lead different lives with different needs.
A balloon payment is never something one should go for, but it’s there as an option and this video is to help those already in them.
@@nokuhlekumalo I used to be a sales person for a dealer and I can tell you the amount of people who took balloon payment either had the cars repossessed before the end of the term let alone others took out loans or refinanced in order to pay the balloon, in my experience I would advise everyone to stay away from a balloon payment and just save enough money or go for a pre-owned vehicle, remember this is a public platform and people other than myself will come across this and criticize your advise 😉
@@lutha1720 thank you man. And those guys (banks) will not remind you until the last date so that they can reposses the car.
It depends , if you really like the car then don't go for balloon and vice versa go for balloon. It also depends how you look at cars , for me I feel like you shouldn't have a car for more than 4 years, so balloon works for me.
High end brands are smart now they offer future value deals. For instance BMW would say in 4 years time we guarantee you that your car will be 430k example. When you do your calculations you break even or have a surplus.
I'd rather walk or use Uber and Bolt
Is it possible to pay the balloon payment at the beginning?
Cause I always thought balloon payment you pay it a month after taking the car
Yes you could. You’d just have to call and tell the bank that the deposit you’ll make is specifically for the balloon.
Hi, you are killing me.
Amazing!!!!
Thank you 🙏🏾☺️
❤❤❤❤ thank you sis
Thank YOU 🙏🏾☺️
Can I cancel a balloon in the middle of the term?
Yes if you settle the car or pay the balloon in total
hahahaha get a balon payment hoping to win a lotto 3 months down the line.
Miss K❤️❤️❤️❤️
That true🤞🤞
🙏🏾🙏🏾🕺🏾
Hey. Do you do adverts for products that are car related?
Please send me an email 📧 nokuhle.templates@gmail.com
can there be a Deposit and Balloon payment at the same time?
Yes
So when you trade in your car doesn't the new one come with it's own balloon payment?
Well that’s if you still decide to choose balloon option on your next one.
Usually people have a deposit saved or they use the profit from selling the old car to fund their deposit (or hopefully by the time you’re upgrading your car you can afford a higher installment so you don’t need a balloon payment at all).
I wish I ddnt have to buy a car
If you finance a car with a balloon, it means you are forcing things!!
You might win the lotto and you might get money left is such terrible financial advice lol you made some good points but man those 2 are just terrible pieces of advice.
That wasnt advice though?!
😂😂😂😂😂😂
Miss K❤️❤️❤️❤️
🥺🥺🤧❤️ waze wangbiza kahle