Hot Air Balloon [Financing]

Just as my knowledge of Gap Insurance was somewhat squatty, so my background with Balloon Financing needs some bulk. But here's the interesting thing, when asking people around the dealership, I realized I am not alone! Usually, if someone isn't a car salesman (which is not many of you) they need a little bit more help with their car terminology. I hate feeling dumb.


Balloon Financing. What does that mean?


First: My source of info comes from http://www.balloonfinancing.com/, creative website name, I know. Feel free to read and read on this site; there's a lot of information. But I will gladly summarize for you with a quick disclaimer that it's not specific to our dealership, though I will review some of our terms at the end.

Balloon Financing allows you to have low monthly payments for a specified term usually 24-36 months. At the end of this term you can do one of a few things:
1) Refinance the remaining balance
2) Pay off the remaining balance
3) Trade in your car
Much like a lease, you can enjoy low payments but the car is yours! There are only a mileage restrictions if you want to return the car at the end of your term.


Balloon Financing is a great way to keep your payment down, especially if your intention is to trade your vehicle every 2-4 years anyways.  But remember that you won't accumulate a lot of equity, so be sure to purchase Gap insurance, keep your mileage low, or put down money on the initial purchase so that you won't end up owing more than your car is worth.


Onto to the good part...

• 30-50% lower payments than a traditional car loan, on average
• Generous or no mileage restrictions, depending on the dealer and the lender
  
• Flexible terms
• Choose to trade, sell, return, or refinance the car at the end of the term
• Sell, buy, or trade vehicle at any time without any penalties
• You own the vehicle and enjoy all the benefits of ownership
  

At Eckert Hyundai, our Balloon Financing rates are AMAZING! For example you could [balloon] finance a 2011 Hyundai Sonata with an APR of 1.9%!  With this financing option you could rock a brand spankin' new Sonata for a monthly payment of $199.
To compare, I calculated a 60 month loan with a 5.8% low APR, the same down payment as the balloon amount above, and I came out with a $352 monthly payment. Yikes.

So, for those of you who have the itch for a new set of wheels, check this option out. Take a look at our inventory and contact us to set up a test drive and a chat with one of our salesmen.

photo provided by cvial.ece.ttu.edu