Mortgage Loan Personal Loan to sell the vehicle again

  • Because of the fact that you are only paying interest on the finance towards the end of the term, you are likely to pay more for the vehicle than its actual value, making it more complicated to sell the vehicle again.

    nce

    Before you decide to take out balloon car finance, you need to plan well in advance. You will need to save or invest so that you will be able to settle the final residual as re-financing a balloon payMortgage Loanment is not easy. Some finance companies will extend the agreeme

    hly instalment; and look long-term as well as your payments may

  • Make sure you are in fact able to pay the mont

    y off the loan and a final pPersonal Loanayment is then required to settle the loan amount.

    Before you take out balloon car fina increase over time as interest rates fluctuate.

Balloon finance can be a very good option in certain situations but you should always be mindful of the possible dangers and pitfalls. Plan well ahead to ensure you will be able to settle the balloon payment at the end of the term. Avoid drawbacks by doing proper research and by planning and taking worst case scenarios into account.Balloon vehicle finance is a loan that is eventually paid off with one large payment whereas with ‘regular’ vehicle finance you would consistently make the same payment until the balance is paid off. With balloon finance the monthly payments are smaller but they are generally not high enough to pant at the end of the term, but this is not the norm. If you, worst case scenario, lost your car