Updated Jaguar E-Pace (2021) Review

The updated Jaguar E-Pace has landed in South Africa and we were among the first publications to sample the newcomer. After spending a week with the 300 Sport, what’s changed and critically, does the stylish British premium crossover have what it takes to snaffle some sales from its (primarily German) rivals?

We Like: Styling, fantastic interior, strong engine, excellent driving manners

We Don’t Like: Expensive when compared to rivals, ride is too firm on bad roads

Fast Facts

Model Tested: Jaguar E-Pace 300 Sport
Price: R1 057 940
Engine: 2.0-litre turbocharged 4-cylinder petrol
Power/Torque: 221 kW / 400 Nm
Transmission: 9-speed automatic
Fuel efficiency: 7.7 L/100 km (claimed)
Load capacity: 577-1234 litres

What is it?

The updated Jaguar E-Pace is the Coventry-based marque’s representative in the hotly-contested premium crossover segment. It has a multitude of rivals, including the new Mercedes-Benz GLB, Volvo XC40, Audi Q3, BMW X1 and Mini Countryman. Interestingly, the E-Pace also finds itself in the middle of a family squabble with the Range Rover Evoque and Land Rover Discovery Sport, which are similarly priced.

Having recently undergone an update, the Jaguar E-Pace boasts substantial revisions both inside and out, and the range now incorporates a clever petrol-electric hybrid derivative, which is powered by a 1.5-litre 3-cylinder turbopetrol mated with an electric motor. Jaguar has applied a handful of exterior tweaks, including new daytime-running lights, to give its offerings a fresher look. The biggest changes occur inside where the firm has overhauled the E-Pace’s cabin for the better (through the addition of the latest infotainment system from the JLR catalogue and more), which we’ll detail below.

With these changes in mind, we got behind the ‘wheel of a sultry-looking Caldera Red Jaguar E-Pace 300 Sport to see if it can match its rivals.

Updated Jaguar E-Pace (2021) Specs & Price

What’s the interior of the updated Jaguar E-Pace like?

What Jaguar has accomplished with the updated E-Pace’s interior is nothing short of remarkable. The previous generation’s cabin was not, shall we say, user-unfriendly, but the user experience of this revised layout is remarkably better in so many ways. First of all, the fascia layout has been completely redesigned to incorporate a humungous central touchscreen infotainment system.

Furthermore, the knurled-metal-finished climate control knobs are elegant and refreshingly simple to use: Turn them to adjust the temperature, push them to toggle the fan speed, and pull them to activate the seat ventilation. Whereas many contemporary luxury cars either have too many buttons on their fascias or basic functions buried in their touchscreen menus, the E-Pace’s climate control console is a minimalist’s dream!

The new infotainment system is the Pivi Pro setup, which we’ve previously experienced in the Land Rover Defender. The 11.4-inch touchscreen is notably brighter than before and the slick menu layout has made it easier to access functions quickly. Impressively, the infotainment system has its own power source, so it fires up near instantaneously when you start the vehicle.

There’s a wireless charging pad as well as Apple CarPlay/Android Auto connectivity, which looks gorgeous on the high-res screen, by the way. The 300 Sport’s infotainment system supports over-the-air software updates and its new-look digital instrument cluster incorporates various themes, full-screen navigation, and other neat little tricks. Finally, to minimise distracted driving, the E-Pace has the latest version of Jaguar’s head-up display.

There is an abundance of USB ports at the front, as well as a high-quality Meridian audio system. Other noteworthy changes include a stubby, but neater, transmission selector, which has replaced the old-school lever, as well as the debut of the nifty ClearSight rear-view mirror, which sees a digital screen replace the usual reflective surface.

It does take some time to get used to, but it’s a brilliant system, plus there’s very little quality loss in low-light conditions. What’s more, Jaguar has introduced updated air purification technology, as well as enhanced versions of its 360-degree camera system.

Jaguars have always offered quality interiors and the updated E-Pace cabin is no different; its fit-and-finish is excellent. The driver’s seat position is good and sporty leather seats afford great visibility out of the cabin. Our test unit was specced with front-seat heating and ventilation, while the rear bench was heated only. If you transport little ones on crisp winter mornings, the latter would certainly be a boon.

How does the Jaguar E-Pace drive?

The E-Pace 300 Sport is powered by a 2.0-litre 4-cylinder turbopetrol, which develops 221 kW/400 Nm and has a claimed 0-100 kph time of just 6.9 sec. We duly expected brisk off-the-line performance courtesy of the all-wheel-drive and 9-speed automatic transmission. The transmission is augmented with ‘wheel-mounted metal shift paddles – not only do they look the part, they feel great in your hands.

The engine pulls strongly from low in the rev range. The key factor here is the 9-speed ‘box, which does a good job of keeping the engine in its sweet spot. The motor does sound a bit strained as it nears its redline, so we avoided this by utilising the terrific shift paddles.

Overtaking manoeuvres took little effort because all 400 Nm is available from 1 500 to 4500 r/min. Perhaps 9 speeds are one too many in this case, but we appreciate the extra ratio benefits fuel economy. Seeing as it has so many ratios, the transmission sometimes hesitated at kick down; it does, after all, have many gears to choose from!

Speaking of fuel economy, while Jaguar claims an average consumption of 7.7 L/100 km, we found the indicated figure hovered around the 9.5 L/100 km mark. Well, when you have something as spirited as the 300 Sport to pilot on some quiet, twisty country roads, it’d be a shame to not make the most of its capabilities. Let us explain…

For Jaguar, good old-fashioned driving feel is integral to all its products and this updated E-Pace offers some genuine driver engagement, which is impressive considering its relative heft. The steering setup is commendable: it offers great levels of feedback and is nicely weighted. The crossover is happy to trundle around town at lower speeds, but when you want to drive quickly, the steering is direct enough to be regarded, um, dynamic. Body control is good too – the Jaguar doesn’t lean or wallow like most high-riding SUVs and can be hustled along at pace without feeling like it’s operating out of its comfort zone.

One minor drawback is the ride quality, which is regrettably very firm, even by Jaguar Land Rover’s sporty-but-pliant standards. The 300 Sport rides on 20-inch alloy wheels as standard and despite the presence of adaptive dampers, most of the inevitable ruts and undulations in the road translated to the cabin. On near-perfect roads, it’s perfectly okay, but there are way too few of those in South Africa.

Is the new Jaguar E-Pace practical?

The Jaguar E-Pace cabin is practical enough, with plenty of useful storage solutions. The central storage bin is perfect for storing your mobile device/s because it houses a pair of USB ports.

There is admittedly less rear legroom in the E-Pace than in some of its rivals, but the aft bench is just about suitable for accommodating average-sized adults in reasonable comfort… Let’s just say taller occupants will find leg- and headroom tight at the back. As far as luggage space is concerned, the Jaguar features one of the larger-sized load bays in its class, the firm claims a capacity of 577 litres.

If you want even more carrying capacity, you can fold the rear seats down to gain access to 1 234 litres. We think the larger load bay makes up for the smaller rear-passenger area, but if you require more passenger space then look to the Range Rover Evoque or Land Rover Discovery Sport. You’ll lose the fantastic driving experience and that amazing infotainment system, so you decide what’s important!

How much does the Jaguar E-Pace in South Africa?

The Jaguar E-Pace range starts from R874 210 and is sold with a 5 year/100 000 km maintenance plan and roadside assistance plan. This Jaguar E-Pace 300 Sport retails for R1 057 940 before options.

See specification details for the J aguar E-Pace

Buy a Jaguar E-Pace on Cars.co.za

Verdict

Make no mistake… We loved our time behind the ‘wheel of the revised Jaguar E-Pace 300 Sport. Not only is the E-Pace the most satisfying-to-drive premium crossover, its new-look interior makes everything else in the segment look either old-fashioned or cluttered inside.

However, while we adored the Jaguar’s driving dynamics and cabin layout, the limited space for rear occupants and decidedly firm ride quality count against it, as does its steep asking price. Also, shouldn’t a premium crossover ideally offer a bit more interior space? Worryingly for Jaguar, there already exists a sister product that offers that: the Land Rover Discovery Sport. Also in the ballpark is the Range Rover Evoque. Both of those products are highly rated and more versatile. Granted, they wouldn’t be as fun to drive as the Jaguar and they don’t feature the fancy Pivi Pro infotainment system… yet.

Should you buy a revised Jaguar E-Pace? This segment is jam-packed with vehicles of a high calibre and if you value head-turning style and driving enjoyment above outright occupant space in a premium crossover, then look no further. There are some excellent turbodiesel and -petrol derivatives lower down in the E-Pace range; they may not be as fast as the 300 Sport, but they arguably offer better value.

Book a test drive of the new Jaguar E-Pace here

Kia reveals all-new Sportage

Kia has officially revealed its arrestingly styled 5th-generation Sportage. Not only does it fully incorporate the brand’s “Opposites United” design language, but the newcomer’s avant-garde fascia is dominated by an extended curved instrument cluster/touchscreen panel.

Whereas the current generation Sportage has the chunky proportions and upright stance that are hallmarks of virtually all contemporary family cars (in addition to a distinctive tiger-nose-themed frontal design, to be fair), its successor doesn’t look like a bigger version of the Sonet, which was recently introduced in Mzansi, or its smaller Seltos compact family car sibling…

*The all-new Sportage X-Line, meanwhile, features a unique bumper, side sill and curved roof rack.*

No, just as was the case with its closely related cousin, the new Hyundai Tucson, Kia’s newcomer marks a major departure from the previous model – in terms of its styling, as well as its advanced digital interface. It’s the brand’s 2nd model, after the EV6 battery-electric crossover, to incorporate the company’s expressive new “Opposites United” design language.

Like its EV6 sibling, the 5th-generation Sportage features crisp, taught character lines that ripple across the surfaces of its sheet metal. There’s a detailed-orientated black grille graphic that spans the width of the front end (in fact, it wraps around it!) and elongated boomerang-shaped LED running lights that curve upward to trace the edge of the family car’s clamshell bonnet.

The side-window area, meanwhile, narrows towards the rear, where blacked-out C-pillars create a floating roof effect, while at the rear, the newcomer’s shoulder lines slope gently downward to meet the top edges of the ornate LED tail-light clusters. Although less pronounced than on the EV6, the new Sportage’s tail lights blend into a distinct ridge halfway up the tailgate, which effectively kicks up the rear end.

Although the new Sportage’s exterior execution is quite dramatic, it’s not entirely unexpected, given that the conservative styling of the current car, which was derived from that of the model it replaced. The interior, however, is revolutionary. Like in the recently facelifted Sorento, there are distinctively shaped ventilation outlets and a slim, rectangular climate-control console positioned in the middle of the fascia.

However, the driver-orientated cabin is dominated by a beautifully sculpted integrated curved display that houses both the newcomer’s digital instrument cluster and infotainment touchscreen. Whereas these elements have gradually been merged in recent designs, this marks the first time Kia has combined them in a Mercedes-Benz-like “Widescreen Cockpit” way.

Although the new Sportage’s exterior execution is quite dramatic, it’s not entirely unexpected, given that the conservative styling of the current car, which was derivative of the model that it replaced. The interior, however, is revolutionary. Like in the recently facelifted Sorento, there are distinctively shaped ventilation outlets and a slim, rectangular climate-control console positioned in the middle of the fascia.

Meanwhile, the driver-orientated cabin is utterly dominated by a beautifully sculpted integrated curved display that houses both the newcomer’s digital instrument cluster and infotainment touchscreen. Whereas these elements have gradually been merged in recent designs, this marks the first time Kia has combined them in a Mercedes-Benz-like “Widescreen Cockpit” way.

Finished in a high-end gloss, the centre console provides ample storage and cupholders (plus, we would assume, a wireless charging pad), while the L-shaped raised central control console features soft-touch switches, an engine start/stop button and a shift-by-wire transmission dial.

The rear of the driver and front passenger seats, meanwhile, are integrated hanger-type designs within the slim headrests that allow clothing or bags to be conveniently hooked into place.

Kia South Africa has introduced a number of new or revised offerings this year, including the Picanto X-Line and Sonet. Waiting in the wings is the Pegas budget sedan and revised Sorento adventure SUV, but whether the new Sportage will make it to the local market before the end of the year remains to be seen; we’d bet that the new newcomer will probably arrive in the Republic early in 2022.

Corvette finally does the ‘right’ thing – in Japan

A Corvette with the ‘wheel on the right side

The Chevrolet Corvette has often taunted global performance car followers.

With its dramatic design, huge V8 engine, relatively affordable price and commitment to rear-wheel drive, the Corvette has always been a potentially great alternative to more snobbish European sportscars.

The only problem is its proudly American steering wheel configuration – which is on the left. With the C8 Corvette, much has changed.

With an engine that has moved from in front, to behind the cabin and a dual-clutch transmission, there is no questioning Chevrolet’s intent with this latest Corvette: Ferrari, Porsche and McLaren customers looking for something cheaper.

Best of all is the presence of a right-hand-drive option. The move to a mid-engine layout has enabled Chevrolet greater assembly adaptability with the C8 Corvette, and righthand drive markets are scheduled to benefit.

Although the C8 Corvette has been shown with its righthand drive cabin in renderings and studio images, the first public outing has now happened. And it wasn’t in the United Kingdom or Australia – two of the world’s most established markets for expensive righthand drive performance cars.

Chevrolet chose to show debut its righthand drive C8 Corvette in Japan. The 6.2-litre naturally-aspirated V8 engine might only have 16-valves, which are pushrod operated, but it does make a terrifically linear 365 kW.

Customers who opt for the performance exhaust option, as one would, will benefit from a peak power increase to 370 kW. With 632 Nm of torque and a kerb weight of only 1 527 kg, the C8 should deliver a terrifically engaging driving experience.

An indication of how focused the design brief has been, for this C8 Corvette, is the fact that it has dry-sump lubrication, for that huge V8. Because high-load cornering, is very definitely a thing, in this Corvette.

Despite the first public event featuring righthand drive C8s in Japan being celebrated by fans of the V8 sportscar genre, Chevrolet is suffering huge parts shortages with its halo model.

Waiting lists for the new C8 are growing, as Chevrolet desperately tries to deal with the production disruptions wrought by a global microchip shortage.

Demerit System Signed Into Law from 1 July 2021

Back in February 2019, the South African Parliament’s Portfolio Committee on Transport accepted the final changes to the controversial Administrative Adjudication of Road Traffic Offences (Aarto) bill, which President Cyril Rhamaposa has now finally signed into law. Here’s all you need to know about the demerit system that will commence on 1 July 2021.

The proposed demerit points system is very similar to what is already used in several European countries. Essentially, points are added onto motorists’ licences if they commit a road offence. Once the motorist has reached a certain number of points, the licence can be suspended and if the motorist continues to commit offences, the licence can be taken away or effectively cancelled.

You can read the Administrative Adjudication of Road Traffic Offences (Aarto) Bill here

The law for the points system was signed in September 1998 as part of the Administrative Adjudication of Road Traffic Offences (AARTO) Act 46 of 1998. The main reason for the delay of the rollout of the system is mainly due to it being adapted for South African road users.

The amendments include the removal of the courts from the AARTO process which is to be replaced by a dedicated Road Traffic Infringement Authority, which is to be largely funded by traffic fine revenue. Transgressors will be required to make written representations to the authority while the bill also makes provision for an Appeals Tribunal, allowing for motorists to challenge infringements within 30 days. If these options are not exercised within the required time frame, the issuing of a drivers license or vehicle license disc will be blocked and demerit points imposed.

What this means is that if you do not pay your traffic fines, you may be blocked from renewing your driving and vehicle licences. Previously, documents had to be sent via registered mail, but this bill now means that documents can be served by email with reminders over WhatsApp and SMS. Frustratingly, the option for motorists to challenge the prosecution in court has been removed.

How Will The Points Work?

– Each driver starts off with zero points.

– Points are allocated according to infringements or offences committed (there are different values for different infringements and offences)

– Points are incurred (allocated) on the date a penalty (fine) is paid or when the person is convicted of the offence (as the case may be)

– Operators receive points separately from their drivers (ie a transport company receives points allocated to the operator’s permit)

– When you have more than 12 points, the licence (and/or operator card) is suspended with effect from 32 days after the maximum points have been reached. 3 suspensions will result in the cancelation of the license.

– The suspension period is calculated in months equal to the number of points exceeding 12, multiplied by three (or such number as may be prescribed by the Minister of Transport)

– The number of points (demerits) added will depend on the severity of the offence

– The driver/operator may apply for the return of the license on expiry of the suspension (disqualification) period

– A driver/operator who is disqualified for the third time will permanently lose the license/operator card and will have to reapply for testing and issue (as if a first time license/operator applicant) after expiry of the disqualification period.

– Demerit points will be reduced (for all persons/operators) at a flat rate of one point per every 3 months (or as otherwise prescribed), except in the case where the evidence points to the fact that the process has been deliberately delayed to obtain a reduction in points.

How Many Points Can You Earn

These are just a few examples of infringement, the bill contains over 2 600 charges which drivers can be held to account. You can find a draft of the regulations here.

Will It Work?

The points system is not a bad one and it’ll quickly send a message to those flouting the law. The key issue, as ever, is enforcement and getting the visible policing out on the roads to catch the offenders. Do you think the points system will have any effect on stemming the carnage on South Africa’s roads? There is currently a countdown on the Aarto website to the live date of the demerit system. According the the Department of Transport, it will go into effect from 1 July 2021.

Further info was found in Michael Sun’s tweet, a Councillor at the City of Johannesburg

The AARTO will be implemented nationally from 1/07/2021.
Every driver starts with 0 demerit points. If 12 demerit points are accumulated the driving licence will be suspended for 3 months.
A driving licence may only be suspended twice after which it will be cancelled. pic.twitter.com/iZvCsKaeGV
— MMC Michael Sun (@MichaelSun168) June 6, 2021

Fiat Goes Electric by 2030

Fiat is another brand that will be joining the electric-only revolution.

On World Environment Day 2021, the CEO of Fiat brand Olivier Francois and architect Stefano Boerie were discussing the future of urban mobility and sustainable architecture to make cities healthier and easier to live in. The all-electric Fiat 500e has been very well received in Europe and it feels like the car has been optimised for urban electrification. Interestingly, Fiat drew inspiration from the green architecture created by Boeri in several locations around the world in its vision of a utopian city shown in the European launch advert for the all-electric new Fiat 500.

Given the takeover by Stellantis (Peugeot, Opel, Citroen, Jeep, Fiat and more) and the motoring landscape in Europe, it makes sense that Fiat goes electric. “We are exploring the territory of sustainable mobility for all: this is our greatest project. Between 2025 and 2030, our product line-up will gradually become electric-only,” said Francois. There’s already a confirmation that an even faster all-electric Abarth version is in development, which sounds exciting.

The Fiat 500e is not sold in South Africa yet, but impressively it’s the first vehicle from Fiat to be built as an electric car from the get-go, while still retaining its trademark cute city looks. It’s powered by a 42 kWh battery and it develops 87 kW and 200 Nm. These amounts may not sound like much, but the 500e is the fastest non-Abarth yet with 0-100 in 9 seconds. It features fast charging and you can get 85% of charge in just 35 minutes.

With Fiat going electric, yet falling under Stellantis, it’ll be interesting to see if the Peugeot/Citroen/Opel side of the business uses the Fiat 500e platform for future iterations of 108/C1, or will we see bigger Fiats use the electrified platforms from France?

For now, Fiat South Africa will continue to sell the internal combustion-engined versions of the 500 and 500 Cabriolet.

Fiat 500 Specs and latest pricing

This week’s news you need to know (June 2021, Week 1)

In this week’s automotive news you need to know: Rolls-Royce has made (what’s said to be) the most expensive car in the world, Rimac might upset its mighty shareholders, BMW thrashes all its ICE M cars with its first battery-electric ‘M car’ and Land Rover has set the base price of its cheapest Defender at R1 million.

Rolls Royce – Boat Tail – calling on oil money

2020 was, despite the crippling effects of a global pandemic, a great year for luxury car brands. While Porsche continued its sales ascent, Ferrari and Aston Martin had bumper years, largely underpinned by SUV variants and, in general, a good sense of what the world’s richest want. Rolls-Royce (RR) has either struggled (or been quietly reluctant) to modernise itself; not that it needs to win popularity contests.

Read more: Rolls-Royce’s R380m Boat Tail

Despite making at least some advancements, RR is tradition-bound, but will this be its downfall in years to come? It almost seems like suicide if you’re not fronting a concerted EV strategy or have SUVs (other than the Cullinan) to churn out – OEM bean-counters love those! Truth is, the Goodwood-based brand is not fussed; its clientele is way too niche to care about adhering to mainstream trends. They want the best of the best and RR plays to that rather well: the decadent coach-built Boat Tail is every bit a middle finger to the world of EVs (for now). You don’t see that type of confidence often these days.

Rimac – EV Hypercars and boardroom antics

If you remember the Youtube clips of Mate Rimac in his electrically-powered BMW E30 dominating drag-racing events in Eastern Europe all those years ago, you’ll know that this company was destined for greatness from the very beginning. Porsche and Hyundai recognised that and strategically acquired 24% and 14% stakes in the company respectively, as did Chinese battery supplier, Camel Group (14%).

Will Porsche allow the Croatian once-part-supplier-turned-novelty-brand to just do its thing and perhaps branch out of the hypercar space and eat into the market share of the future GT3 and GT2 models when the Zuffenhausen-based brand finally mothballs the flat-six – or ditches the internal-combustion engine entirely (sorry, Hans Mezger) – one day in the not-too-distant future?

That type of self-cannibalisation “moment” won’t sit well with Porsche’s management, I can assure you! I anticipate that Porsche may be keen to buy out Hyundai’s stake, because something has to give.

BMW i4 M50 – a clean slate

It’s here, M people: the first M EV. Long gone are the days of the sonorous free-breathing E46 M3 (3.2-litre straight 6), E60 M5 (5.0-litre V10) and E92 M3 (4.0-litre V8), to name but a few of the Bavarian marque’s most celebrated powerplants; they incorporated incremental advancements that allowed BMW M cars to trim their 0-100-kph times to what seemed like impossibly low numbers. Several years of Herculean effort – the stuff of legend – has just been eclipsed by the specs of the latest ‘M car’; the eco-friendly M50. For traditionalists or sentimental petrolheads, it’s a sickening gut punch, isn’t it?

What’s more, if you were upset about that controversial grille treatment on the latest 4 Series and recently-launched G80 M3 and G82 M4, you’re not going to feel any better about the i4’s unmistakable schnoz. In fact, you probably cry yourself to sleep at night before getting up in the morning, all bleary-eyed and crestfallen, to scour the used-car classifieds in the hopes of hunting down the very last of the unfettered ICE-engined M cars. The truth is the future is here and OEMs are bringing the change, whether you like it or not. Fit in or get out is the message and well… if you can’t beat ’em, join “M”.

Land Rover Defender 90 – not cheap

Despite the myriad raving reviews motoring journos have given the new Defender, the model’s price positioning has put it out of the reach of most buyers, let alone the Defender faithful, which I find difficult to accept. Towards the end of the previous generation’s run, you could scroll through online ads for Defenders without batting an eyelid at the asking prices. They weren’t cheap, but they were within reach.

The same, however, cannot be said about the new Defender 90; its base price is R1 million, which means you’ll need to be part of the senior management of a flourishing company, own your own successful business or be awarded a juicy government tender to afford one. And, if the new Landies are as good as they’re said to be, don’t expect the used market to offer many “affordable” examples anytime soon.

Diesel BMW M2 M50d with NOS Video

This crazy triple-turbo, 580hp, NOS and Water Meth BMW M2 M50d takes to the screens in the latest installment of Launch Control.

This has to be one of the most unique builds we’ve ever come across. Gary Martins from Johannesburg, South Africa, is an ex BMW Master Technician who now owns his own business, Grease Monkey Motors.

He has a passion for diesel racecars and this is his second custom creation. Borrowing the 3.0-litre triple-turbo engine from a BMW X5 M50d, and starting off with a 220d donor car, he set about creating this absolute diesel-powered monster.

With 435 kW (580 Nm) and over 1000 Nm of torque, this is a car designed for track racing, hill climbs drag racing and just plain old hooning, which Gary does with enthusiasm for us and our cameras at The Rock Raceway.

We hope you enjoy this mad engine swap video, let us know what you think and if you’d like to see more of this kind of content.

Looking for a used BMW for sale in South Africa? We have over 4100 to choose from!

Pros & Cons of the Balloon Payment

Having plied his trade in the finance industry for 20 years (during which time he worked for Accenture, Discovery, FNB and Wesbank), Alan Quinn has an intimate understanding of vehicle finance. In this article, he explains why the dreaded balloon payment might not be such a bad idea… and what you need to look out for.

When you’re enquiring about vehicle finance for your next car, a dealership’s finance manager may talk to you about a “balloon payment” or a “residual”. What is a residual/balloon and should you consider it?

So what is a residual / balloon payment?

When you take out any loan from a bank, they will give you an amount you need to pay back every month (also known as the “instalment:). If you loan R250k to buy a car at an interest rate of 10%, for example, the monthly payment will be R4 631 per month if the loan term is for 72 months. You can easily work out your car repayments using our finance calculator tool.

Every month a big portion of the R4 631 you’ll pay will be used to service the interest you owe on the money the bank loaned you and the rest of it is used to “pay off” a part of the sum that you borrowed.

However, a while ago the banks came up with a bright idea to reduce your monthly payments!

The bright idea was that you don’t have to pay back ALL the money you borrowed during the 72-month contract. Let’s say, we agree that instead of paying back R250k over 72 months (plus interest), you only have to pay R175k and then pay the balance of the loan the R75k (the “residual”) – at the end of the 72 months in ONE big payment.

The R75k is the “balloon payment” you must make at the end of the term (i.e. 72 months) in order to settle your debt and own your vehicle outright.

Why would you want to take a Residual Deal?

That’s easy – it makes your monthly payment MUCH lower. In my example above, your monthly instalment for that R250k car, without a balloon payment, was R4 631. With a R75k balloon, this becomes R3 867 – a saving of almost R800 per month. That is why vehicle finance deals with balloon payments are so popular with consumers. They effectively make expensive cars more affordable!

Also read: New Cars or Used Cars: What Car Should You Buy?

Where do I find the money to make the Balloon Payment at the end?

Answer – you sell the car you now own. At the end of the 72 months, you own the car – because you paid for it for 6 years! Because you own it, this car can be sold or traded in and you can use this cash to pay off the money you still owe… but a word of caution, however: your car is worth less money every year (it devalues). In fact, every km you drive and every service you miss and every dent you do not repair will cost you in the end. If you want to sell your vehicle, to settle your residual, then you need to look after it well.

Also read: Factors That Affect the Value of Your Car

The other option to pay off your balloon payment is to ask your bank to lend you money to pay off the residual amount. You have just been paying them for 72 months and they will jump at the chance to offer you a new loan.

So why would I NOT want a residual/balloon payment?

Balloon payments make more expensive (i.e. cooler) cars more affordable! So why not? Here are 2 main reasons:

1. You have paid for the car for 6 years, but you don’t really own anything after spending hundreds of thousands of Rand. You need to settle the balloon payment, which means selling the car or taking out another loan. A residual means you are not really buying a car – you are sort of renting it, making payments every month and then, after 6 years, you have to sort out the residual. Alternatively, after 6 years you might want a break from making payments to the bank so that you can spend on numerous other things. If you want to pay off your car completely and be free of payments, then don’t do a residual.

2. How long do you think it will be until you want to change your car? There’s an important reason for that question. A balloon payment makes it harder to change your car regularly. To put it simply, a residual/balloon payment means that you are paying off less of your loan each month and the money you still owe to the bank, which is called the “settlement amount” of the loan, stays higher for longer.

This becomes a problem if you want to change your car in less than 3 to 4 years. This is because the value of your car has gone down quicker than the settlement amount. You will rock up at a dealership to buy a new car and the dealer will tell you that you still owe a big wad of cash to get out of the car you are still paying for. If you like changing your car often, my advice to you is “don’t do residuals”.

Why is a good Credit Score important here?

Residuals are very popular and most car buyers opt for them. No matter how much I tell you to pay off your loans quickly and get debt-free, I know that you are most likely to buy the best vehicle you can!

Residuals/balloon payments sound like a win/win for both the banks and the customer, BUT banks will only offer you a deal with a residual if you have a good credit score. Why do banks do this?

Remember when I said that a residual means that you will be paying off your loan more slowly? That’s a great idea if the bank really trusts you to make all those payments over 72 months. However, if the bank is not sure about you – i.e. you have a bad credit score, then they will not offer you a residual/balloon payment.

Manage your Credit Score:

When it comes to financing a car, your Credit Score is the most important thing out there. On the Cars.co.za site we have articles to explain:

What is a credit score and why is it important?

How to get a good credit score?

Why a bad Credit Score will cost you thousands every month

Cars.co.za and Just Money have teamed up and will give you your Credit Score for free, forever! Register today and start working to save money on your next car!

Click on this link to Register for Just Money.

Haval H6 (2021) Specs & Price

Haval has introduced its new H6 in the South African market. The newcomer appears to shift the goalposts in the family-car segment in terms of standard specification, connectivity and active safety features.

Since Haval arrived in South Africa back in 2017, the brand has found much favour with local buyers – as of May 2021, Haval is the 7th best-selling car brand in South Africa ahead of brands such as Nissan, Kia and Renault.

The outgoing 1st-generation H6 model preceded the introduction of Haval in South Africa (it used to be badged as a GWM (Great Wall Motors, which is Haval’s parent company), but it helped to establish the respective brands in the South African family car market, which is dominated by offerings such as the Toyota RAV4, Kia Sportage, Hyundai Tucson, Mazda CX-5 and Volkswagen Tiguan. Its successor is the 3rd-generation H6, shown here, which is based on the recently introduced L.E.M.O.N platform, which is renowned for its structural rigidity and weight-optimisation.

What trim and engines are offered for the Haval H6?

New Haval H6 Rear — *The new Haval H6 comes to market with a 2.0-litre turbopetrol engine mated with a 7-speed DCT.*

Penned by Phil Simmons, who, before he joined GMW 3 years ago, was in charge of Land Rover and Range Rover’s design department, the new H6 boasts significantly more contemporary styling and upmarket brightwork than its understated predecessor. It comes equipped with LED lighting elements, front fog lamps, roof rails and 19-inch alloys and is available in 3 trim levels: Premium, Luxury as well as range-topping Super Luxury spec.

Haval claims its newcomer, which has a McPherson-strut front- and a multi-link rear suspension setup, offers a best-in-class wheelbase length of 2 738 mm. What’s more, its centre of gravity has been lowered by some 20 mm.

All H6 derivatives employ a 2.0-litre turbopetrol engine (with peak outputs of 150 kW at 6 000-6 300 rpm and 320 Nm), mated with a 7-speed dual-clutch automatic transmission. The newcomer comes in both front- and all-wheel-drive guises, although the latter (AWD) is only available in conjunction with Luxury and Super Luxury trim levels.

Futuristic interior layout

Suffice to say the H6’s spacious interior exudes premium quality with swathes of leather, piano-black surfaces, subtle contrast stitching and brushed metal-look inserts. Apart from the mounted rectangular screens for the all-digital instrument cluster (10.25 inch) and touch-sensitive infotainment system (12.3 inch), the Haval’s cockpit is distinguished by a tiered dashboard and a floating centre console, replete with a rotary transmission selector.

New Haval H6 — *The new H6 will offer a staggering amount of standard features.*

The luxury features and onboard technology that you might find in the new H6 simply beggar belief, especially when you consider the aforementioned well-established, but moderately luxurious, models it competes against…

Among the features that will be offered on local H6 derivatives include an 8-way adjustable driver- and 4-way adjustable front passenger seat, both in conjunction with heating and ventilation; a heated ‘wheel; negative-ion air cleaning- and filtration; adaptive cruise control (with traffic-jam assist); traffic-sign recognition; a 360-degree-view camera system, keyless entry with one-button start and a sunroof. The Super Luxury version will also feature a full-colour head-up display, a wireless charging pad and an electrically powered- and remotely operated tailgate.

Expanded Autonomous Emergency Braking

The new H6’s safety specification, meanwhile, is generous. Apart from featuring ABS with ABD, 6 airbags (dual front-, side and curtain units) and a 9.3-generation electronic stability program (ESP), Haval’s newcomer is claimed to be the only model in its class “that can activate its Autonomous Emergency Braking system in all driving scenarios, including passing pedestrians, bicycles and traffic intersections”. Other safety features include lane-departure warning and -keeping assist, as well as blind-spot monitoring- and tyre-pressure monitoring systems.

The new H6 is available in grey, red, white, brown, green, blue and black exterior finishes. Its standard interior scheme is black, but can be ordered with black-and-brown, black-and-grey and black-and-red combinations.

How much does the new Haval H6 Cost in South Africa?

2.0T Premium 7DCT 2WD – R419 900
2.0T Luxury 7DCT 2WD – R454 900
2.0T Luxury 7DCT 4WD – R479 900
2.0T Super Luxury 7DCT 4WD – R514 900

The Haval H6 is sold with a 5-year/100 000km warranty and a 5-year/60 000km service plan.

Buy a Haval on Cars.co.za

Honda Fit Modulo X is a mild hot hatch

Honda wants to see if you’re interested in a mildly hot Honda Fit.

Mugen might no longer that relevant to Honda, but the Japanese brand still has an in-house accessories division, operating under the Modulo name. Here’s what they accomplished after dragging a Honda Fit into the workshop.

Its latest release is the Honda Fit Modulo X. This is Honda’s attempt at a more visually dynamic hatchback, without going completely OTT.

Predictably, Modulo has replaced the standard Honda Fit front and rear bumpers with new mouldings that have higher edge cut-outs and black detailing. These new bumpers, with their black graphic finishes, contract strongly if it is ordered in white.

A honeycomb grille gives the Fit Modulo X some more textured presence at the front, which is different from the closed nose design on most Fits.

There is a subtle rear spoiler that sits atop the Honda’s fifth door, too, in black, whilst the wing mirror caps are also darkened.

Rolling the Fit Modulo X along are 16-inch alloy wheels and if you are a dedicated follower of all things Honda, they might look familiar. The Japanese brand’s Super GT racing cars, use a similar spoke design, which acted as inspiration for these Honda Fit Modulo X wheels.

Mechanical modifications? Honda hasn’t allowed any tinkering of the Fit’s hybrid power- or drivetrain, but this hatchback should be a touch more responsive to drive through sweeps and tight curves, thanks to a damper upgrade at each wheel corner.

*Honda will be introducing the latest Fit to South Africa later this month, which also heralds the end of Jazz, as a model name, in the local market.

Updated Jaguar E-Pace (2021) Review

Fast Facts

What is it?

What’s the interior of the updated Jaguar E-Pace like?

How does the Jaguar E-Pace drive?

Is the new Jaguar E-Pace practical?

How much does the Jaguar E-Pace in South Africa?

Verdict

Further Reading

Kia reveals all-new Sportage

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Further Reading

Pros & Cons of the Balloon Payment

So what is a residual / balloon payment?

Why would you want to take a Residual Deal?

Where do I find the money to make the Balloon Payment at the end?

So why would I NOT want a residual/balloon payment?

Why is a good Credit Score important here?

Manage your Credit Score:

Haval H6 (2021) Specs & Price

Haval has introduced its new H6 in the South African market. The newcomer appears to shift the goalposts in the family-car segment in terms of standard specification, connectivity and active safety features.

What trim and engines are offered for the Haval H6?

Futuristic interior layout

Expanded Autonomous Emergency Braking

How much does the new Haval H6 Cost in South Africa?

Related Content

Honda Fit Modulo X is a mild hot hatch

Honda wants to see if you’re interested in a mildly hot Honda Fit.

Related content