What a balloon payment really does to your repayment

A balloon is a portion of the price you leave unpaid until the end of the term. That lowers each monthly instalment.

You still owe interest on the balloon amount for the whole term, so the car costs more over time than a plain instalment plan.

At the end you pay the lump sum, refinance it, or trade the car in. Decide which before you sign.

Use the calculator on the finance page to compare the same car with and without a balloon.