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FAQ’s
Car Balloon Payments–
Your Questions Answered
Understanding car balloon payments can make financing your next vehicle a more flexible and manageable process. Whether you’re exploring how balloon payments work, weighing up their pros and cons, or planning for the lump sum at the end of the loan term, this FAQ section is here to assist.
We’ve gathered the most common we get asked about car balloon payments to provide the clarity you need to decide if this option is right for you. For further assistance, a Finlease broker is just a call away, ready to guide you through the process and ensure you secure the right financing solution tailored to your needs.
What is a balloon payment?
A car balloon payment is a lump sum payment due at the end of a car loan or lease agreement. It is designed to reduce the monthly repayments during the loan term, with the borrower paying off the remaining balance in one go at the end.
How does a balloon payment work?
With a balloon payment, the lender calculates a lower monthly repayment by excluding a portion of the car’s value (the balloon amount). At the end of the term, you must pay the balloon amount or refinance it.
Is a balloon payment right for me?
A balloon payment might be suitable if you:
- Want lower monthly repayments.
- Plan to sell or trade in the vehicle at the end of the loan.
- Have a clear strategy to cover the lump sum payment.
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I recently had the pleasure of working with Finlease for my vehicle loan, and I couldn’t be happier with the service I received. From the very beginning, the team was incredibly professional and attentive to my needs. They took the time to explain all my options and helped me find the best loan package that suited my financial situation. The application process was smooth and efficient, and I was impressed by how quickly everything was finalised. I highly recommend Finlease to anyone in need of vehicle financing. Their expertise and outstanding customer service truly set them apart. Thank you, Finlease, for making my vehicle loan experience so positive!
Kirsty A.
We have used Finlease many times and each time we have received exceptional service. Most recently, with my vehicle, they would send me documents that needed completing and would follow up with a phone call or message to ensure I knew why I was sent the documents and to provide an opportunity to ask questions. They were proactive in providing support and were able to think outside-the-box to ensure that the best option was obtainable for me. We will definitely be using Finlease again and I would highly recommend them to anyone who would like hassle-free assistance with finance.
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We needed an unusual type of work vehicle and Finlease got the finance organised. One more vehicle to be financed and they will get our business again. Good rates and service, we have used these guys for years.
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Understanding Car Finance Payments
Our car balloon payment calculator provides a quick and easy way to estimate your monthly car loan repayments and final lump sum.
What you need:
- The total amount you wish to finance.
- Your preferred residual or balloon value at the term’s end, including the option for nil residual.
- Customise Your Plan: Test different monthly payments across various interest rates.
- Current Settings: The calculator uses an average interest rate, but we encourage getting a refined quote.
- Personalised for You: Your specific circumstances could qualify you for even lower interest rates so chat to a specialist today.
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