Looking to buy a new $30K car, with 4 year finance and 50% balloon payment. Can anyone recommend a finance company with low rates?
My First New Car - Where to Get Finance?
![](https://files.ozbargain.com.au/g/38.jpg)
Comments
Take out a personal loan to cover the car with same bank as your home loan..then combine the two using the equity in your home…then your only paying 4% interest instead of 50%..avoid finance if possible.
Yeah for 30 years.
Some car companies offer fantastic finance deals, like Nissan and Hyundia did 0% recently
I'm getting a toyota 86, value after 4 years 15k, changeover price 32k. Not quite 50%. Interest is at 6%.
Didn't know Hyudai and Nissan did 0%, was it posted on the main page?
The 1% comp rate will have its own conditions, and I doubt a balloon of that amount is allowed. Also, a Hyundai is pretty far away from an 86. Not sure why that interest rate would even sway you from that car.
I'm assuming the balloon is because of the 'Toyota access' or whatever they call it.
All I can suggest is lose the balloon payment. If you wanna trade in the car sooner, or it gets written off etc, you're never going to be 'ahead'.
What if you get bored of the sports car, or need a bigger car or something?
Lose the balloon!
Thanks for your suggestion. So do you think a 6% interest rate on that car is a pretty good deal?
They actually allow for full payment but I went for the balloon because of lower repayments per month. I am thinking of shortening the loan to 3 years and a higher balloon value. Toyota actually calculates it and it is their guarantee trade in/ buy back price.
One thing I'm confused about, on that loan by my rough calculations, I should be paying around 3500 in interest, but Toyota is charging closer to 6000. Loan establishment and monthly account keeping fees would make up some of that, but what other fees are there to account for the extra costs?
50% balloon? Holy crap what sort of car are you getting? I can't think of many new cars that will be worth >50% 4 years later!