Balloon payments or Residual payments are a clever way to reduce your monthly finance repayments by deferring a percentage of the vehicle purchase price until the end of the finance contract.
When your residual payment is due you may either pay the residual in cash and own the vehicle, sell the vehicle paying out the residual with the funds from the sale or refinance the residual amount over another few years or so.
Ballons or Residuals may make a more prestigious, luxurious or exotic car affordable than you could purchase without a balloon or residual. A typical car repayment of $1,000 a month can be reduced by as much as 45% giving you almost double the reach to drive that dream car!
Maximum balloon amounts vary from 25% to 55% of the purchase price depending on the age, make and model of the vehicle. Some older vehicles may not be eligible for a balloon or Residual however we are generally more generous in what we are able to provide compared to other financiers in the market.
| Before making any decision regarding a financial product you must always consult a qualified person capable of taking into consideration all factors relating to your personal financial circumstances. The above information is for reference purposes only and does not pertain to your personal situation, nor is it a statement of advice in any way. Motorcore Finance PTY LTD accept no responsibility for any loss that may arise as a result of this information. This arrangement is available only to approved persons. |
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