BEHIND THE NUMBERS
How this calculation works
Worked example
£10,000 is financed. With no interest, £6,000 is repaid through 20 payments of £300 and £4,000 is deferred. Your total to own is £12,010 including the £10 fee.
Example result: £300.00
A lower payment does not remove the balloon
The deferred amount keeps the regular payment down but is still part of the debt. If you want to own the car, budget for both the balloon and any purchase fee. Returning it avoids the ownership payment but may trigger contractual mileage or condition charges.
Count the instalments on the quote
A quotation may describe a term that includes a final month with only the balloon. Enter the actual count of regular instalments and select whether the balloon falls with the final regular payment or the following month.
Assumptions and rounding
- Regular payments start after one month; the selected balloon date determines its discounting.
- Interest is charged on all outstanding finance, including the deferred balloon. No interim rounding.
Questions about this calculator
Does the balloon attract interest?
Yes. It stays in the financed balance until it is repaid; subtracting it before charging interest would understate the cost.
Is the result a finance offer?
No. The lender sets the rate, balloon, conditions and approval criteria. Enter those quoted terms to compare the arithmetic.