Managing Your Money | Balloon payment warning for new car buyers

CAPE TOWN - A third of Standard Bank’s customers looking to buy a car have opted to include the maximum balloon payment in the past 12 months.

This as South Africans continue to struggle with affordability as a result of high interest rates.

READ: Personal finance | Hitting the brakes on your petrol spend

According to the bank, the number of new vehicles purchased that include a balloon payment, has increased by 41% over the past five years.

While balloon payments may appear to make car ownership more affordable, they come at a higher cost.

Personal Finance Journalist Maya Fisher-French spoke to eNCA.