PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Loans
Car Loan
Compare Car Loans with Jerry
Jerry's Expert Advice
Car Loan Guides
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
What is a balloon car loan, and how does it work?
I'm expecting an inheritance about a year from now after it goes through probate court. I also want to buy a car, and my dad suggested a balloon car loan. What is it, and how does it work?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
A balloon
car loan
is a type of car loan that’s structured so that you make one final lump-sum, or balloon payment, at the end of the loan. This means that you can pay lower monthly payments for most of the loan term, but you’ll have to make a final large payment when you get your inheritance.Although balloon car loans are rare in the auto industry (they’re much more common in the mortgage world), they still provide a service that can help you get the car of your choice. Make sure to read through your contract to find out the terms of the balloon payment—you don’t want to get caught off guard by a payment that’s thousands of dollars.
To protect your investment during and after the loan, sign up with the
Jerry
, the car insurance comparison and broker app. With Jerry, you can search and compare dozens of car insurance quotes to get the best rate on the coverage you need.View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
.jpg&w=64&q=75){kind=avatar}
Browse More Content
Insurance for Your Car
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
