How the instalment is worked out
The amount financed is the price, less your deposit and any trade-in, plus any fee added to the finance. Interest is charged monthly at the yearly rate divided by 12 on what you still owe, and the instalment is the level amount that pays it off over the term, or down to the balloon if there is one.
Balloon payments
A balloon is a lump sum left to pay at the end. It lowers the instalment, but you pay interest on it all the way through, so the car costs more in total, and you still have to pay, refinance or sell to cover the balloon at the end. The calculator shows both.
Before you sign
Ask for the total you’ll pay, including the balloon and every fee, and read the agreement carefully, including what happens if you fall behind. Hire purchase in Zimbabwe is governed by the Hire-Purchase Act; if anything in the agreement is unclear, ask the dealer or a lawyer before you sign.
We don’t offer credit, arrange finance or recommend dealers or lenders.