The Balloon Payment Car Loan

The balloon payment car loan is a type of loan that allows you to defer a certain amount of money until the last payment of your loan. Here are the basics of the balloon payment car loan and how it works.

Balloon Payment Car Loan

With this type of loan, you are going to be able to put off paying a certain amount of money until the end of the loan. At the last payment of your loan, you are going to have to make a much larger balloon payment. 

Considerations

One of the big advantages of this type of loan is that you are going to be able to get smaller monthly payments throughout the majority of your loan. This can make it more affordable for you and it can allow you to get a nicer car.

If you are going to get this type of loan, you will want to consider the drawbacks as well. For example, you have to plan ahead with this type of loan so that you are not caught off guard by the unusually large payment at the end of your loan. You do not want to have to forfeit your car because you cannot make the last payment.