Fulham71

Does anyone know of any banks etc that do a balloon payment facility ?

Cheers

Paul

TopBanana

I remember Direct Line doing something like that

Scooby Snacks 23

Alliance & Leicester used to also.

davyboy

If its a 3 year deal with ballon payment - get a 5 year deal instead....it's cheaper.

Do the math as they say.

Fulham71

neither Alliance & Leicester or Direct Line do balloon finance anymore

davyboy

Because a 3 year ballon payment deal is the same as a 5 year deal!

davyboy

£10k loan

3 year ballon payment - 36*£193 (=7000) + ballon payment £4500 = 11500
5 year loan - 60*£193 = £11500

I think the 3 year deal was to help those in debt feel more in control. "oh yeah, I only have a 3 year loan"

Bartop

Yeah but surely if you can afford it over 3 years it's cheaper overall because of depreciation on the car. ie the car will be worth more in 3 years than 5 years ?

davyboy

...so what do you do after 3 years then?

Sell the car, and pay the rest off? Same as you could do with a 5 year.

Keep the car? have another 2 years repayments.

ozzy

the only thing I can think of different is if you want to swap the car after year 3. In the first you would be settling in full, but in the 5yr plan you may have an early settlement fee to pay on top. Shouldn't be much though.

simo

get an unsecured loan with out an early settlement fee then, there are plenty of lenders who offer this. Also make sure you get one that only charges interest on the outstanding balance & does not add it all on at the start of the loan.

Like Dave says, 5 years & settle in 3 if you sell the car (or get a new loan then if you are upgrading for the difference only)