Car Loan Tip No. 55 When to Agree to a Balloon Auto LoanA balloon auto loan is where you only pay the interest of the car loan monthly (i.e., and not the principal amount). The main advantage is that you get to settle very low monthly car loan payments. If you can guarantee yourself that you can save up the lump sum required during the months you are paying only the interest, then go for such a loan. This is also an option if you can pre-determine a certain amount of money to be yours (e.g., freedom from other loans, a salary bonus, etc.) at the time the balloon payment is required.Written by: Anthony Recto Next Car Loan Tip
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