Guys,

It is about time to get something larger and im thinking about the Lancer Evolution. I was curious if anyone has done the Balloon Payment Option on their financing and what your opinions on it are. I have had 2 S2000's for the better part of the last five years and feel its time to change. Thanks for your opinion on the matter.

Jeremiah

 

NEVER take a balloon loan. You can owe tens of thousands of dollars on the last payment. And depending on the value of the car at the end of term, this final payment can be way more than the car is then worth.

Andrew

 

somewhat of what you said was true, but i don't agree with it.....

some companies offer 3 types of ways to finance cars....they are:

retail, lease, and the final retail with a ballon payment...

the retail with a ballon payment is basically the same thing as a lease....

then you say why just i don't lease right???

the reason is because some states taxes are so high on leased vehicles it just doesn't pay to lease...but doing the retail with ballon payment it puts the car in your name and there are no taxes.......

now the ballon payment is just like purchasing the car after the lease.....you can either turn in the car or refinance....

oh yeah and the final payment probably will be worth more than the car....reason is cars depreciate like rocks.....

i hope this explains it to you....and if you have any questions let me know....

oh yeah i work for a company that finances cars....so i know

 

so you're saying is we should avoid balloon payment

 

Thanks for the inputs guys, I am going to see how all the numbers work out in both ways and see what I like better. I will defintely pm you if I have any questions Jigga thanks

 

Balloons can be great depending on the company's policies with them....

Honda's balloon program allows you to turn the car in when it comes time that the 'baloon' is due. You do not have to pay the difference between what the car may be worth and what the balloon is....You just pay wear and tear and mileage overages, just like a lease.

Another major advantage of a balloon is the fact that you are not required to have 100/300 insurance. When you are doing a baloon, you are technically financing. Most leases require the higher limits of insurance.

 

well retail with ballon payments are just like leases.....but like i said before, in some states taxes are so high on leased vehicles...it just makes sense to buy them....thats why auto companies offer retail with ballon.....

the ballon payment is just like buying your car after the lease is up.....either buy it or turn in your vehicle just like a lease.....


but you have to figure this though....

when you finance a car.....your payments are higher and if you finance 100% of the car.....for most of the loan your car is worth less than what you owe anyways....so to say the ballon payment is bad is just like saying leasing is bad....which in someways it has it's advantages and sometimes it doesn't.....

thats another way of looking at it...

 

Don't buy a Mitsubishi. Trust me.

 

you can get a 2003 evo for just over 20K now I think.

 

Why do people keep saying not to buy a mitsubishi? I have read a little but would like more input on the subject. I know the EVO is a pretty well put together car and would not be having drivetrain problems (at least from what I have read) I have driven 2 and liked it more than the STI. Any more input would be greatly appreciated. Thanks