Deciding on the ‘right’ length of term, depends on how many kilometres you’ll travel every year, how quickly the vehicle will depreciate, and what the forecasted end-of-term value is. Terms can be one year, five years, or anywhere in between.

A higher end-of-term balloon means your monthly repayments are going to be lower, but you’ve got to weigh that up against value of the vehicle on disposal. If the balloon is going to be greater than the resale value, you might want to reconsider.

The decision here isn’t just how much your deposit should be, it’s also whether you even use one at all. Although a deposit reduces the size of the loan, it also ties up capital you could be putting to better use. It’s a fine balance getting it all right. You’ve got to know what you’re doing, and you’ve got to have accurate information. Or, you can just call us instead. We know it inside out.