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ballon finance

Old 08-17-2006, 01:33 PM
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balloon finance

Is balloon financing is a good way to go regarding on financing a 07 s550,and if so should i put down more than the asking down payment.Iam looking to do 60 months loan with mb financing department,have anyone did a balloon loan financig with mb,or any other bank etc.thanks

Last edited by jesse james; 08-17-2006 at 08:29 PM.
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Old 08-22-2006, 08:22 PM
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you sound like a long term lease candidate

Here is why you might want to consider a lease, even a long 60 month one:

1. get in a bad wreck, 20K won't total this expensive car...but it will kill the value. At the end of the lease, turn it back. If you had a baloon payment to make, you might feel strange making it on a damaged car.

2. Depending on your state, you won't have to pay sales tax on the entire car, just the lease payment. With a baloon note, you pay tax on the whole thing and this is added to your balance. Should you decide to trade 3 years from now, you will be more upside down with a baloon retail contract than a 60 month lease!

3. A 60 month lease is essentially a baloon contract, but is 'legally' a lease. The residual value is effectively a baloon payment. Same thing, but you get all the benefits of the lease.

If you really KNOW in your heart you will keep this car 7-10 years then do a 72 month straight retail contract from whoever provides the best rates.

If you are unsure, consider a 48 or 60 month lease.

Just my $.02
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Old 01-06-2019, 09:34 PM
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I keep reading the term "lease" or "balloon lease" or " balloon payment", a lease and a balloon payment finance are 2 different things. MB leases are usually do low because MB supports them and at the end the cars value is usually always less than what you've contracted as the residual purchase value si't stupid to buy it. There are also "one payment leases" where you write one check for a 3 year lease, the money rate is very low because the risk is low because you've essentially prepaid everything. First you need to figure out which route you're going to take and then run some numbers. With interest rates still low a traditional lease from MB will put you in the G Wagon for the total least amount of out of pocket money. In 3 years you'll probably want a new one. Lots of variables, cost of money, subsidy by MB, what you can earn on your cash, the value of the car at some point in the future, your appetite for risk. Good luck.
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