Hi folks,
sorry if this is a dumb question, but in this high APR environment, I’ve seen certain threads where people refer to onepay ( balloon payment?), how does it work can you completely skirt paying interest on the duration of the lease? Do all manufactures allow it? can you purchase GAP insurance to avoid losing your “equity” or you are SOL?
anyway thanks for all the info
A “one pay” and “balloon loan” are not the same thing. A one pay lease is where you pay all of your monthly payments up front in exchange for a reduction in the interest rate you pay. Sometimes it’s worth doing and sometimes it’s not. You need to compare the regular monthly rate to what the rate is with the one pay reduction. A balloon loan is similar to a lease but you are on the hook for the final balloon payment to purchase the car. Depending on circumstances you may be able to sell it privately or back to the dealer if the payment amount is favorable and you don’t want to keep the car. Most lenders include GAP insurance on a lease, including One Pays. You would need to check with the lender on the balloon loan to see if that is included.
thanks for the quick reply, how can one determine the reduction in APR? mostly interested in Audi or BMW info thx!
The easiest way would be to become a super supporter here at Leasehackr and gain access to the Ratefindr portion of the calculator.
GAP has nothing to do with one-pay or protecting your equity.
With a one-pay, does a person get refunded a prorated amount if the car is totaled?
Depends on the contract.
I’ve seen Audi and NMAC contracts posted on the forum which seemed to indicate the answer is “yes” and “no” respectively.
This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.