New Car Financing (Balloon)
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Member
Joined: Feb 2002
Posts: 108
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From: Cincinnati
2002 C230k
New Car Financing (Balloon)
Hi, I am new to the forum. I kinda stumbled across it while researching the C230k, a car I have decided that I need. Anyway, I was wondering whether anyone has any experience with the MB Balloon payment financing option. I am leasing now, and I hate it (June is so far away). I like the idea of the smaller payments, but I worry that I will kick myself in a few years for not paying a little extra now. Thanks for the imput!
Out Of Control!!
Joined: Dec 2001
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From: Obama Land
K Car
The balloon option from my understanding is much like a lease. The final payment is the balloon. You make an agreement to turn in the car and walk away (I've heard this called something like a walk away loan), or refinance the final payment (or of course, pay in cash). There are advantages and disadvantages over a lease. Some states require additional insurance coverage for a lease. With a balloon loan you are actually financing, so you don't have to get this. One disadvantage would be if you wanted to get rid of the car early. Because you are only paying a small amount of the principle, the car depreciates much faster than you are paying (No Gap Insurance). You would be very upsidedown.
As always, weigh your options carefully for your situation.
As always, weigh your options carefully for your situation.
Almost a Member!
Joined: Jan 2002
Posts: 51
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2002 C240
I looked at the balloon option on my last purchase. It's really not worth it at all. You end up paying interest on interest on the balloon... I suggest talking to your dealer, and after getting all the numbers, sit down and figure how much you're paying lease. vs. financing. vs. balloon.
By the way, those of you who went with MBCC financing, did anyone get lower than 7.5% interest? My dealer insisted this was the lowest they went?
By the way, those of you who went with MBCC financing, did anyone get lower than 7.5% interest? My dealer insisted this was the lowest they went?
MBWorld Fanatic!
Joined: Dec 2001
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From: SoCal
2002 C230 : 2007 C230
Chuckd94,
Don't do the baloon. Be patient and save until you have a down payment large enough to give you the payments you desire.
Ethan,
I didn't use MBCC, but I did get my financing at the dealer. I got a rate of 5.59% from Chase.
Don't do the baloon. Be patient and save until you have a down payment large enough to give you the payments you desire.
Ethan,
I didn't use MBCC, but I did get my financing at the dealer. I got a rate of 5.59% from Chase.
Out Of Control!!
Joined: Dec 2001
Posts: 12,161
Likes: 1
From: Obama Land
K Car
Originally posted by Ethan
I looked at the balloon option on my last purchase. It's really not worth it at all. You end up paying interest on interest on the balloon... I suggest talking to your dealer, and after getting all the numbers, sit down and figure how much you're paying lease. vs. financing. vs. balloon.
By the way, those of you who went with MBCC financing, did anyone get lower than 7.5% interest? My dealer insisted this was the lowest they went?
I looked at the balloon option on my last purchase. It's really not worth it at all. You end up paying interest on interest on the balloon... I suggest talking to your dealer, and after getting all the numbers, sit down and figure how much you're paying lease. vs. financing. vs. balloon.
By the way, those of you who went with MBCC financing, did anyone get lower than 7.5% interest? My dealer insisted this was the lowest they went?
I agree with you on about sitting down and looking at the numbers. This is always the smart thing to do. And don't take the word of the finance officer either. Make sure everything is in writing.
btw- I do not have a balloon loan, and I'm not trying to recommend, or not recommend one.
7.5 is what MB told me also. I already had a lower rate from outside, so I didn't go with them.
Out Of Control!!
Joined: Dec 2001
Posts: 12,161
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From: Obama Land
K Car
Originally posted by KWiK
Chuckd94,
Don't do the baloon. Be patient and save until you have a down payment large enough to give you the payments you desire.
Chuckd94,
Don't do the baloon. Be patient and save until you have a down payment large enough to give you the payments you desire.
--Just a thought.
Super Member
Joined: Nov 2001
Posts: 644
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From: Orlando, FL
2002 Mercedes-Benz C230 Kompressor Sports Coupe
Take a look at a 72 month (extra year) loan before looking at a balloon payment. There are some good rates online at http://www.peoplefirst.com/
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MBWorld Fanatic!
Joined: Dec 2001
Posts: 2,891
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From: SoCal
2002 C230 : 2007 C230
According to Autosite.com MBCC is currently offering 6.5% on all but a few models.
Out Of Control!!
Joined: Dec 2001
Posts: 12,161
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From: Obama Land
K Car
Originally posted by galaxygrrl
Eloan has 5.5% if you have good credit. My last car loan was through them. They're fine.
Eloan has 5.5% if you have good credit. My last car loan was through them. They're fine.
