Car Loans with Balloon Payment
Car Loans with Balloon Payment
If you want a car loan but want to keep the monthly repayments to a minimum, you may want to think about car loans with balloon payment. A balloon payment is a large lump sum that is made at the end of the car loan agreement.
Car loans with balloon payment are suitable for people who:
- Are expecting a financial windfall i.e. tax refund, inheritance, dividend
- Are good at investing, and can take advantage of the loan type to save money
Benefits of car loans with balloon payment include
- The deposit required is generally a lot lower
- Low interest rate
- Low monthly payments
But Car loans with balloon payment are not for everyone – if you do not have the money to pay off the loan at the end of the agreement and/or are not good at putting money aside to pay the final lump sum, you could end up in financial difficulties, so it is a risky way to borrow.
To compare a range of different car deals, use our car loan calculator, which shows the APR, monthly repayments, the actual amount paid back on all the leading loan deals in the market, and any fees attached so that you can compare deals and see if a car loan with balloon payment could be the one to suit you.
Alternatively click on car loans advertising links below:
Disclaimer: Every effort is made to keep the site accurate, however we cannot guarantee that a Car Loan issuer has not increased or decreased one or more of the APRs or fees/charges associated with a loan deal or changed its features, obligations or benefits. Please be sure to read the Car Loan agreement fully and carefully before making any agreement.