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What is a balloon car loan?
I've been reading about different types and lengths of car loans when I stumbled across a balloon loan. What is a balloon loan? Does it apply to car loans?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
Great question! A balloon
car loan
is a type of loan where you make the same monthly payments each month for a predetermined amount of time and then a lump sum payment at the end.The main advantage of a balloon car loan is lower monthly payments. It’s also convenient if you’re expecting to come into some money further down the road.
If you decide to get a balloon car loan, make sure to get the appropriate insurance to protect your investment. One easy way to do this is through the
Jerry
app—we’ll get you personalized quotes from over 50 different insurance companies, so that all you need to do is pick the plan or provider that works best for you!Best of luck with your own car loan!
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- Gregory R.
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