Quote:
Originally Posted by richardew
Perhaps they don't understand finance. They sell cars. You can show them the calculations, or better yet, get them to agree not to charge interest on the balloon amount in writing.
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You of course have to pay interest on the balloon amount, otherwise might as well get a 100% balloon payment lol. They might try to argue you pay interest on the full purchase price of the car and then pay what you still owe as a balloon payment, the end result is the same. A balloon payment is similar to an interest only loan or a lease. Usually all ways to live beyond your means. They can still be a good option compared to leasing though.