what does it mean when they say 20% residual amount is R20 000?
A residual amount has nothing to do with a car insurance policy, we will however try and answer your question to the best of our knowledge.
A residual deal refers to a finance agreement that includes a balloon payment, or residual value, which you must pay at the end of the finance term. The residual value can be relatively large compared with your monthly instalments.
When the finance term ends, you have two options: you can either sell the car and hope that the selling price will be enough to cover the residual value, or you can ask the bank to grant you further finance for the residual amount.
Hope that helps …
Car Insurance Additional Information
MiWay offers flexible car insurance to cover losses primarily due to an accident or theft.
In addition to accident or theft, comprehensive car insurance in South Africa covers losses due to fire and explosion, natural disasters like hail and floods and damage to the vehicle’s glass.
Additional options such as car hire and cover for non-standard sound systems and car accessories can also be added to your car insurance policy.
Car Insurance is sometimes referred to as Vehicle Insurance or Motor Insurance.
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