What Are Balloon Auto Loans?
Balloon auto loans are a type of auto loan that offer you money to buy a car but you do not need to put down payment. This is a very attractive offer since you can save the money you would have used for the down payment and use it to invest or on other important things. Balloon car loans are however not a good thing for you if you are financially irresponsible. With all balloon car loans, the greatest payment comes at the end of the lease period. This period can last between four to seven years. Balloon auto loans work like lease agreements except that at the end pf the lease period you are supposed to make a full repayment or to refinance for another term. It is possible that the new amount you refinance may have a higher interest rate because the car is older. Of course this can be a somewhat depressing factor but if you are smart you will invest the down payment to avoid this. Balloon auto loans are a good way to get yourself a car that you normally wouldn’t be able to buy with an o
