Melbourne, Australia, June 16, 2021 / PRNewswire / – New and used vehicles can be very expensive. For many people, cost is what keeps them from upgrading their car. Leading financing broker National Loans explain that lump sum car loan can make financial sense when used properly and depending on cash flow can provide more flexibility to buyers.
A lump sum payment is often referred to as a residual payment. National Loans, which also provides caravan financing and boat financing, says that having a balloon loan can make buying a car more accessible because it puts a percentage of the overall cost on hold, but the buyer needs to consider the balloon payment and how they will make that repayment at the end of the term of the loan.
National Loans emphasizes that it is also important for buyers to stay within their means. When determining whether a balloon loan is appropriate, the buyer should consider what they can afford in terms of monthly repayments, as well as additional car expenses. They should still be able to comfortably afford to maintain their lifestyle.
Although lump sum auto loans involve that a large portion of the cost of the vehicle is paid at the end of the loan term as a lump sum, there is some flexibility, especially for those with low costs. good credit history. National Loans specifies that the balloon amount can be refinanced, settled, or the vehicle can be traded.
Lump sum auto loans are well suited for those who like to upgrade their vehicle often. If exchanging the vehicle at the end of the loan term is the buyer’s preference, National Loans recommends choosing a balloon loan in an amount similar to the cost of the current value of the vehicle and exchanging the vehicle when ‘it has reached the breakeven point. This is when the market value of the car matches the settlement amount owed.
For those with a good credit history, refinancing the loan to cover the lump sum payment is another option. This can be beneficial to the buyer, especially if they can get a better interest rate.
When determining if a lump sum car loan is appropriate, it is important to fully understand the terms and conditions and to do your due diligence to ensure that it is a suitable match for the individual’s circumstances. National Loans can help buyers get a car loan, as well as a trailer or caravan loan. boat loan.
Lump sum auto loans
Lump sum auto loans
SOURCE National Loans