Any thoughts on balloon loan for a 392 rubicon?
Where is the selling price at?
88k MSRP, 2022 392 XR with sky one touch. 10% off MSRP plus $400 doc fee.
$88k msrp? Sounds too high
Yeah it was 83.4K at the time of order in January 2022, but had a few price bumps along the way, and no price protection from the dealer I ordered at (Chapman)
Americu & CapEd ballon rates are very competitive with conventional financing, but the lowest conventional rates from Parsons or Fedchoice (under 2.5%) will work out to a lower TCO as compared to the best balloon options. If you are all about TCO, go with Parson/Fedchoice for 84 months. If you want to trade a lower payment for a slightly higher TCO, go with AmeriCu/CapEd.
FYI-- I will almost always refinance into a balloon loan now. This just eliminates the time dependency which comes into play when buying a hot vehicle.
2022 Jeep Wranger Willys 2door Link
2021 Telsa Model Y Performance Link
Both of the above are with AmeriCu.
Prior to these, I had a Model Y w/ PenFed and a Model S w/ CapEd.
The MRM is $79K so you need to get your total amount financed as far below that as possible, which seems difficult, given the MSRP and discount structure. One of the downsides of this program is that AFG will only update MRM once a year, since we are towards the end of year now, we can see gaps where the manufacturer increase MSRP but MRM did not.
Thats gonna be a no then on the balloon. They dont have any of those additional items in the MRM. It maxes out at $80k. Overall not great offerings from them even at $80k.
Yeah just checked the calculator and I don’t think it would work out well in this situation. Was worth a shot though! Thanks for the feedback.
What vehicles are good to look at for this type of financing?
Are there any lenders that offer these type of loans that are not in NY? It seems the ones listed in the thread only allow membership from residents of specific states.
All three of the recommended CUs (AmeriCu, CapEd and Hanscomm) will accept public membership with the proper small donation to the proper charity. I have used all three and I live in NJ.
However, NY happens to be the honeyhole of CUs support balloon loans. I would look into SEFCU, they are NY only and usually have very competitive rates.
How do you access AFG balloon loan? Is it only through CU?
Decided to check out going through the balloon program. I went through BMW FS and was approved for the Select Option on a new M340i. The difference is pretty staggering compared to what one of the dealers was giving me for a two year old one.
I plan on trying to see if I can get approved through another CU and seeing, if possible, jumping up to an M3/M4 if it can stay under what the proposed wife budget is.
Question though, how does the equity work going forward? When you are paying the payments and putting the down payment, does that go right to the principle? So, in three years and I want to go trade it, what is expected to be down from the total you finance? That part I’m a bit tripped up on.
A number of credit unions partner with AFG to offer a retail balloon loan program.
In the first post I recommend three CUs; AmeriCu, CapEd and Hanscomm
Note that the BMW select program is not the same as a non-captive balloon loan. Although this program maybe superior to conventional captive financing options, generally the terms are not as favorably as non-captive options.
It works the same way it does with a conventional loan. Any down payment is a direct reduction of the loan balance. Each payment has a principal component, which reduces the loan balance. You can buy out the vehicle at any time for the balance due on the loan. If you want an exact answer to your loan balance at a certain time, choose to see the amortization schedule when using the final balloon payment calculator.
I’ve given this a pretty good look. For those looking for a program in CA, Americu https://www.americu.org/ has easy membership. Join the American Consumer Council https://www.americanconsumercouncil.org/index.asp for $8-15 (based out of San Diego, CA) and you become eligible.
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Thanks for the response.
I am going to try and check out one of those you mentioned. I believe I had an issue with one of them on my credit report (apparently I had a fraud check a while back and it flagged in their system).
If they don’t price protect ordering a 23 $8000 off with $900 doc fee might be a better option for you.
Would this make sense for a used vehicle to keep payments low? I have a lease ending on a 2020 4Runner soon with a buyout of 31k. (USBank)
36m balloon loan through Americu is around $380 with a final balloon payment of $21k
36m conventional is around $940
Could you refi or sell a vehicle with a balloon loan at anytime? I’m not 100 percent on how they work other than your last payment is essentially the remaining of the full loan balance.