South Africans are relying on balloon payments to afford a car - EWN

South Africans shopping for a new car are being urged to look beyond monthly installments and carefully examine the full cost of vehicle ownership before signing a finance agreement.

Speaking on 702, consumer journalist Wendy Knowler said that many buyers focus on securing vehicle finance approval but fail to consider the financial commitment that follows over the next six, seven or even eight years.

The warning comes as vehicle prices continue to rise, forcing more consumers to use balloon payments to reduce monthly installments.