Better Than a Lease? A Balloon Loan Primer

Here is an example I worked on today for a

2022 Toyota TACOMA 4WD Double Cab TRD Off Road V6 MT.
_ BL payment at $332/mo with $0 DAS
_ Keep for 2 years you will pay $332x24 and buyouts for $35K
_ Based on Manheim results, you sell it for $37K.

Your total cost of ownership is $5968.
Your effective payment is $248/mo.

Versus

2022 Toyota TACOMA 4WD Double Cab TRD Off Road V6 MT.
_ Conventional financing at $628/mo with $0 DAS
_ Keep for 2 years, you will pay $628x24 and buyout for $26K
_ Based on Manheim results, you sell it for $37K.

Your total cost of ownership is $4072.
Your effective payment is $169/mo.

Although the convention loan yields a lower TCO, due to less interest, it locks up $7104 more equity and requires $296/mo larger payments.

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