If the cars value tanks after 4-5 years aren’t you screwed since you have a high ballon payment left over?
Correct, but I only keep it from 3yr-
Note 60month and 72month sometimes have big rate gap… so gonna do this calculation again once im ready.
But as OP said, 72 month 0 down is the option to go, it’s like the 1% lease rule come back again lol
Calculated on TRX with/ leathered seat, purchase price 83000. 2000 down, 6.25% tax getting $852/mo and after 3 years owns 60297 for the loan, if market is still good, then this should be written off after selling.
So it’s like equivalent $912/mo for 93k MSRP vehicle, pretty ok though.
Just the rates, can they stop rocketing plz
I prefer the 72 month $0 down.
Just like leases, no cash out of pocket for me.
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You end up paying more interest 
So I have to buy a car probably within the next 30 days since I will lock in 2.25 at 84 months at Carolina Co-Op tomorrow. I don’t really want a Tacoma, but I think it is the best vehicle to hold during this period of uncertainty, and I can’t get what I want anyways so I’m hoping two years buys me enough time to wait out the market. I do see that there are a lot of trucks listed on the “Hot Sheet”. Haven’t trucks traditionally depreciated quite a bit/sold at 20% off MSRP? I’d feel nervous expecting a Ram 1500 any other full size outside of a TRX/Raptor to hold its value over next two years (seems contingent that supply will remain scarce).
Well if you do a 24 month balloon loan on a full size and the market does tank and you’re upside down you can always just turn it back in, akin to a lease
I purchased an iX50 with select program. The rate was 1.9%.
Let’s not confuse programs offered by captive lenders, which are more of hybrids, with non-captive or third party balloons loans. We are focused on the later here. In this case the balloon loan rate is usually 1% point higher then conventional loan rate for a given term.
However calculating total cost of ownership is not as simple as just comparing interest rates.
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yes but no down payment and much lower monthly payment. it’s interests for cash now, and consider the inflation right now anything below 8% is free gift you can use that money to buy I-bond instead.
Depending on trim, Ram 1500 can be purchased for 20% below MSRP today. 12-14% off MSRP dealer price + incentives (incentives highest on Big Horn trims, lower on Laramie/Limited).
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Yes, I know. I am active on 5th Gen forum as well lol.
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Bumping this, but does anyone have any good balloon suggestions for a sports sedan (Audi, BMW, etc). I have tried using the AVG to get an idea with both new and used, but everything comes out pretty similar to a conventional loan.
Appreciate the suggestions!
Sanity check, with a Balloon if you pay it off early your payoff excludes unearned interest right?
Yes, your payoff is calculated the same as a conventional loan.
Going through Audi and BMW. I haven’t really seen anything pop out. I’m also looking at newer used models as well.
Well that is due to the fact on how a Ballon Loan works.
I’d suggest looking at these cars on the hot sheet, else you may just be pushing a rock uphill
Side note, Defender 110S ballon residuals are strong…
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Nothing really sticking out on the list, unfortunately. A lot of SUVs and I already have one. Definitely helpful. I’ve seen a few I’ve used on the calculator pop up to me. I may go down that route. Cross referencing with CarGurus ‘great’ with the MMR has helped a bit.
For Audi & BMW the only decent programs I’ve found are for the electric and hybrid models.
I will have to look again in that regard. I tried going through and looking at the i4, but it didn’t look good on first glance. I’ll have to check again!
Edit - how does the tax credit work with the balloons? I believe I read it somewhere but having a hard time recollecting.
You own the car, you pay the sales tax, and claim credits. It works as a loan.
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