At Grow Wealth Solutions, we specialise in car loans and equipment finance for self-employed individuals. We go beyond securing low-interest rates by structuring loans to meet your business needs, including options with or without balloon payments.
Your Options:
Option A: No Balloon – Pay off the entire loan over the term. This means higher repayments but no balance at the end.
Option B: With a Balloon – Pay off 80% of the loan over 5 years, with lower repayments and a balance due at the end.
What’s a Balloon Payment?
A balloon payment is the remaining balance owed at the end of your loan term. For example:
- Loan: $100,000
- Term: 5 years
- Balloon: 20% = $20,000
With a balloon, monthly payments are reduced (e.g., $1,600 vs. $2,000). At the term’s end, you can sell the car to cover the balloon and use any surplus as a deposit for your next vehicle.
Most of our clients choose Option B, enjoying lower repayments and better cash flow. After 5 years, they trade in for a new vehicle, staying under warranty and keeping expenses predictable.
Which option works best for you? Contact us to explore smarter car finance solutions tailored to your needs!