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Questions on balloon financing

Hustler

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State
TX
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United States
#1
I received a good offer on a Stinger using balloon financing. I was planning to go with the lease buyout but this seems easier.

The dealer is in Arkansas while I live in Texas. Would this cause any problems?
Is the baloon financing also done through KMF?

Is there any common trap that I should look out for when going for balloon financing? I?m planning to pay it off asap.
 
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Non-US
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What I Drive
18 Stinger GT2 AWD
#2
I received a good offer on a Stinger using balloon financing. I was planning to go with the lease buyout but this seems easier.

The dealer is in Arkansas while I live in Texas. Would this cause any problems?
Is the baloon financing also done through KMF?

Is there any common trap that I should look out for when going for balloon financing? I?m planning to pay it off asap.
Interest rate is generally higher. And the bulk of the principal is left at the end... so you need to plan for it.

If you can?t afford the normal monthly payment, then you are hedging your bet that you?ll have enough later to pay it off. I dislike this mentality. If you can?t afford it now, you can?t afford it later. But that?s my opinion.





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OP
H

Hustler

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Thread Starter #3
Interest rate is generally higher. And the bulk of the principal is left at the end... so you need to plan for it.

If you can?t afford the normal monthly payment, then you are hedging your bet that you?ll have enough later to pay it off. I dislike this mentality. If you can?t afford it now, you can?t afford it later. But that?s my opinion.





Sent from my iPhone using Tapatalk
I think tou overlooked my comment that I want to pay it off asap, meaning within 1 or 2 months after purchase. This is just a way to get extra rebates and an alternative route to the lease buyout.
 
Messages
103
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35
State
Non-US
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What I Drive
18 Stinger GT2 AWD
#4
Then it?s like any loan. Sooner you pay-off, the less interest you?ve payed overall.



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OP
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Hustler

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Thread Starter #5
Then it?s like any loan. Sooner you pay-off, the less interest you?ve payed overall.



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I think we are aligned on that. :)
 
Messages
58
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24
State
FL
Country
United States
What I Drive
2018 Kia Stinger GT2 AWD
#6
Check the fine print of the finance agreement. Balloon loans and Rule of 72 loans have notoriously had high early termination expenses.
I received a good offer on a Stinger using balloon financing. I was planning to go with the lease buyout but this seems easier.

The dealer is in Arkansas while I live in Texas. Would this cause any problems?
Is the baloon financing also done through KMF?

Is there any common trap that I should look out for when going for balloon financing? I?m planning to pay it off asap.
All posts are for entertainment, are my opinions and not meant to be acted upon. All photos are copyrighted and not for use by others, without express written consent by me.
 
OP
H

Hustler

New Member
Messages
10
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0
State
TX
Country
United States
Thread Starter #7
Check the fine print of the finance agreement. Balloon loans and Rule of 72 loans have notoriously had high early termination expenses.

All posts are for entertainment, are my opinions and not meant to be acted upon. All photos are copyrighted and not for use by others, without express written consent by me.
That's a very good point, thanks.
Does anyone have experience if the KMF balloon financing includes early termination fees?
 
Messages
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State
TX
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United States
#8
That's how I got my GT2 here in TX. The taxes on leases in TX make the lease cash buyout approach very unfavorable.
KMF's terms are good. Yes, the interest rate is high (6.25% - 7%) but that doesn't matter if you're moving the debt elsewhere. No early termination fees - it's managed just like a traditional loan just with a huge remaining principle.
Just talk through the deal with the dealership and make sure the taxes and registration are handled correctly.
 


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