Not sure what you’re referring to above.
I found these two CUs in CA offering AFGs balloon product. Their membership requirements are not as lax others.
JACom Credit Union in Los Angeles, CA
Torrance Community Credit Union, Torrance, CA
All three of the CU referenced in the first post (AmeriCu, CapEd and Hanscom) allow for open membership and will underwrite vehicles in most states. Right now I recommend AmeriCu.
6 Likes
Thanks, I was replying from a post months ago and it did not quite it. Appreciate the reply.
Jeep Grand Cherokee Base 4xe ($61K MSRP, $51K OTD after discount/rebate)
Balloon Loan
24 mo financing at $462/mo with $0 DAS
Keep for 2 years you will pay $462x24 and buyout for $43K (Interest paid: $ 3,174.29)
Based on Manheim results of a (JGC 4WD V6 Summit), you sell it for $43K.
Effective payment is $462/mo
With $3000 DAS payment would be reduced to $327
2 Likes
How do you figure? Therr havent been any gc 4xes that have even been delivered yet, much less going through manheim.
I am modeling off the MMR performance of a Jeep Grand Cherokee Summit V6 which has around the same starting MSRP as the 4xe Base. This worked out to 30% depreciation over 24 months, which seemed a reasonable assumption, and also aligns with the RV.
As you stated, no real data available yet. (clarified the post).
Forgive my ignorance, but if this is a purchase how is the rebate discounted immediately off of the purchase price? I thought that was just on a lease where you could do that?
The answer to this question is a moving target.
Until the end of this year, Jeep will hopefully continue to pass through the rebate when leasing.
In this case, you immediately buy-out and refinance the lease with the balloon loan,
At some point in the future, the rebate is moving to a point of sale reduction on purchases.
In this case, you can use the balloon loan financing as the initial method.
3 Likes
Ok, got it. Thanks for the information.
Recently closed on a balloon loan with Americu. Wanted to share the addendum.
And here is the link to the AmeriCu calcualtor (rates are accurate!)
https://secure.autofinancialgroup.com/AFG/index.jsp?CUID=221375802
2 Likes
How come there is an annual mileage allowance on it?
The AmeriCu balloon program includes the option to sell the car back to lender instead of making the final payment. In this case, they would determine a value using, in part, your mileage. This works in your favor, when done properly, because you can always choose the lowest milage option, to keep the payment low, and sell the car to a third party instead.
7 Likes
Thinking of going through them for Bronco, you can sell whenever right?
Yes, you can sell for your outstanding loan balance, at any time. just like a conventional loan.
For flips, is one way better than the other, balloon vs traditional financing?
Thanks i figured as much and read up on the site. Should have looked before asking…Bronco Payment saver is actually better than previous 4xe’s i have ran.
If I’m understanding correctly, for a TRX flip, you’d have to pay sales tax on the whole car if doing a Balloon Loan, and if you’re holding for less than ~6 months, the savings vs MF (or rent charge) don’t make this the more valuable option, right?
I kept reading - seems like the point of the BL is to lower your payment on a monthly basis, and then hope for positive equity at the end of your BL/when you sell, even though TCO may/will be higher.
In the case of a TRX, you are correct that a balloon loan will require payment of the complete sales tax amount, where-as a lease buyout would reduce you total tax liability (in most states). This is not ideal for a flip situation, because it reduces your profit.
However the balloon loan is a great option to hold a TRX for a year or two. It will have a much cheaper payment then a lease or finance (because of the strong RV) and you will still realize positive equity on the backend sale.
The primary objective is to yield the lowest possible monthly payment to maximize monthly cash flow. In some cases, the total TCO maybe higher, since the interest rates on the balloon loans tend to be about 1% higher then the best conventional financing rates. However, when comparing a balloon loan to captive financing rates (like CCAP), the TCO will generally favor the balloon loan program.
2 Likes
This is a great hack with ALN offers for the 4xe currently. At the time with 12% off and $7500 credit with CCAP lease and then refinance with the BL. 
For Americu, their MRM/CRV values on some 2022 Jeep models seems to be lower than Jeep configurator. Does it matter if the MRM is lower?
4 Likes
When I use the calculator I dont see RV .
Isnt this suppose to show you a RV once you finish the term lets say 60 or 72 months.
What is MRM value in this calculator. MSRP?
Edit: If one wants to refinance an existing loan with BL. Not a lease but one owns the car through some other bank. Will the sales tax need to be paid again on the full value ? I guess not.