[flamingwicky]

I have heard about the balloon financing of the Ghibli, can anyone shed some more light on it? In case if anyone as done balloon financing of the Ghibli give some input on it.

From what I have understood is its kind of a finance where you pay a final big amount at the end of the financing period and in the financing period you pay less monthly cost.

Does anyone know what APR we are looking at when doing balloon financing on the Ghibli.

 

[ssipes]

Auto Financing Options | Balloon Loans, Buying & Leasing | Ally Auto


My personal opinion, leasing is far better than doing a balloon finance loan.


Also, look into a local credit union. 1.75% x 72 or 75 months, would be much better than either leasing or "ballooning", both of which will have higher interest rates. Leasing can have a bigger tax benefit depending on your situation.

 

[ssipes]

I just checked Ally's balloon rates and they are MUCH higher than you can get through a credit union or major big box bank.

 

[flamingwicky]

Thanks a lot ssipes. Which credit union did you looked at for 1.75 x 72 can you give me some reference or idea

 

[totopsgr]

Balloon financing has higher interest rates than normal financing. But it allows for smaller installments if you have problem paying the monthly installment under a normal financing scheme. People who take on balloon financing, are usually refinancing the balloon payment to spread the debt even further.

 

[ssipes]

Flamingwicky,

What city and state are you in? Most credit unions are specific to your location. GTE FCU, Suncoast Schools FCU, Achieva CU, Grow Financial FCU, Navy FCU, USAA..... There are SEVERAL others with rates under 2.5%. I would also look at Chase, Wells Fargo, TD bank, PNC, etc. Great rates are still available!


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[flamingwicky]

I am in Manchester, CT. I have been weighing in my options here for which financing i am going to go for.

Lease is something I would never do no matter what. Since I like to have the feeling of owning something. (if you know what i mean)

If the balloon financing rate is somewhere in the 2% mark it would be awesome. I had some financial planning done so at the end of 5 years the car would be completely paid off. But if the interest rate is too high i might need to consider normal financing.

 

[Etodd31856]

Do you really own it if you owe the bank 80K or $90K? that is not the best way to look at this. you want the lowest cost to USE the car during the time you have possession of it. Owning a depreciating asset is a bad approach IMO. Let the feelings of ownership go.................

 

[flamingwicky]

Etodd, i agree with you. So dont you think the if you can reduce your monthly payments and in those five years keep paying extra principal at the end of each year the balloon financing would be a better choice. (Keeping in mind that the interest is not too high)

Again even if i loose the feeling of ownership I just cant lease the car. Too hard and difficult to overcome this personal choice.

 

[ssipes]

I will not disclose the buy rates, but balloon rates will be close to double 2%, if not more (depending on the dealer).


Here is a link to the credit unions in Connecticut.






DOB: Credit Unions in Connecticut

 

[flamingwicky]

So what are the normal financing rates here. I see the credit union are giving around 1.99 for up to 84 months.

Does this looks good??

Can you PM me the rate for the balloon financing if you have any?

 

[ssipes]

PM sent