Balloon Financing is like a lease, except that you actually own the vehicle. You can finance anywhere from 36 to 60 months and then have a balloon note to pay at the end of the term.
At the end of the balloon contract, you can either finance the balance at current used car rates, or sell the car to pay off the balance. The balloon payment amount must be equal to 90% of residual value per Auto Lease Guide (ALG), and loan request must exceed ALG residual value amount.
