A higher residual value translates to lower monthly instalments for the buyer. It’s a value that a third party (such as the dealer, OEM, or bank) guarantees the car will be worth at the end of its lease and is calculated by determining how much the car will depreciate over the course of the lease. Your options at this point in time will be to settle, trade in your vehicle, or refinance the outstanding amount.A residual applies to car leasing. The downside to balloon payments is that at the end of the contract, an amount of R90 000 will still be owed on the car. ![]() Interest will be calculated on the full outstanding amount. In other words, you will only pay the monthly instalment on the R210 000 (R300 000 minus R90 000), which makes it much more affordable. Let’s say you buy a car for R300 000 with a balloon of 30% (R90 000), the R90 000 will only be payable at the end of the contract as your last instalment. To learn more about relationship-based ads, online behavioral advertising and our privacy practices, please review the Bank of America Online Privacy Notice and our Online Privacy FAQs.A balloon payment is where a portion of the total value of the car is only due at the end of the contract. You may also visit the individual sites for additional information on their data and privacy practices and opt-out options. To learn more about ad choices, or to opt out of interest-based advertising with non-affiliated third-party sites, visit YourAdChoices popup powered by the DAA or through the Network Advertising Initiative's Opt-Out Tool popup. Ads served on our behalf by these companies do not contain unencrypted personal information and we limit the use of personal information by companies that serve our ads. Relationship-based ads and online behavioral advertising help us do that.īank of America participates in the Digital Advertising Alliance ("DAA") self-regulatory Principles for Online Behavioral Advertising and uses the Advertising Options Icon on our behavioral ads on non-affiliated third-party sites (excluding ads appearing on platforms that do not accept the icon). We strive to provide you with information about products and services you might find interesting and useful. If you're not currently enrolled in Online Banking, visit a financial center or click to schedule an appointment to apply for your loan. Online Banking customers may apply online for an auto loan to purchase a vehicle from a private party (an individual seller). ![]() The final APR may differ from the APR in the above results due to additional fees that may be applicable. Please consult with qualified professionals to discuss your situation. The terms and conditions of products offered by institutions will differ and may affect the results of the calculator. This calculator is not intended to offer any tax, legal, financial or investment advice and does not assure the availability of or your eligibility for any specific product offered by Bank of America, its affiliates or any other institution, nor does this calculator predict or guarantee the actual results of any investment product. Bank of America and its affiliates are not tax or legal advisers. The results provided by this calculator are also intended for illustrative purposes only and accuracy is not guaranteed. You should enter figures that are appropriate to your individual situation. ![]() The figures entered on the input page of this calculator are for hypothetical purposes only.
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