A car loan with down payment and final installment is also called balloon financing. This vehicle financing is divided into three parts, down payment, installment payment and final installment. The down payment and the final installment reduce the loan amount and therefore intends to minimize the monthly payment.
This type of fundraising is particularly suitable if you do not want to attack existing savings or, for example, expect a larger payment from a saver. The deposit should be available from your own resources and should not represent an additional charge.
With car loans in particular, it is particularly important to compare all possible offers exactly. The variety of financing offers and different types of financing, when buying a car, make it easy for you to find the best and cheapest car loan with down payment and final installment.
Where do you finance your car loan with down payment and final installment?
The cooperating bank of the dealer or manufacturer usually gives the best conditions for the respective loan with a down payment and a final installment. In addition, you can save additional money through the conclusion, through additional special conditions and discounts.
The choice to take out the car loan directly from the dealer is usually the most lucrative, but you should still look at a counter offer from the house bank or from online credit institutions. The dealers’ banks often only give cheap loans when buying a new or annual car and cannot really keep up with used cars.
The payment plan of the car loan with down payment and final installment is fulfilled, what now?
The installments are paid, the final installment is due. You now have several options. One possibility would be to sell the car yourself, to settle the final installment and to buy or finance a new car with a possible profit. However, if you expect a larger sum of money and would like to keep your car, you are of course free to pay the final installment to the bank in one amount.
However, many changes can have occurred in your life and you can neither sell your car nor settle the final installment in one sum, so you can also continue to finance the final installment. A type of loan that gives you a lot of leeway and can be optimally geared towards your life.