Balloon Payment Finance
Get an instant, online decision on balloon finance with an initial soft search to apply. All circumstances welcome.
Rates from 9.9% APR.
Representative APR 10.9%
Part of Evolution Funding, the UK’s largest motor finance and technology provider.
Part of Evolution Funding, the UK’s largest motor finance and technology provider.
Feeling a bit uncertain about balloon payments? We understand your confusion. Car finance with a balloon payment often comes with lots of jargon, making it hard to understand what you’ve got yourself into.
In truth, it’s a simple way of financing a vehicle for less each month with a lump sum at the end. If you can’t afford that lump sum, you can return the vehicle or opt for balloon payment finance.
Looking to refinance the balloon payment on your car?
A balloon payment on a car is the final lump sum that is due at the end of a PCP or lease agreement. Once you have paid this lump sum to the lender, the car then belongs to you.
However, this lump sum may be more than you can afford in cash. Maybe you’ve not been able to save up the money to pay off your balloon payment. Or perhaps you’ve got some money set aside, but something else has come up. That could be an essential house repair or an unexpected vet bill.
Many drivers don’t plan to keep their car, but then fall in love with it over the course of their PCP term. As a result, they want to pay off their balloon payment but haven’t been preparing for it financially.
One option is to refinance your balloon payment. This allows you to break the lump sum down into manageable monthly payments. The beauty of this is you won’t need to use your cash savings to become the proud owner of the car you’ve been paying off!
Refinancing your balloon payment means you’ll enjoy the same car you’ve grown so fond of over the past few years but with lower monthly payments. By continuing to pay off your outstanding finance, you could improve your credit score over time. Above all else, you’ll avoid having to search for a new car all over again.
But if you’ve not done it before, you might be wondering how to get the right deal – or where you even start. My Car Credit takes the hassle out of the entire process, helping match you with the best finance plan for your car finance balloon payment. Our team will ensure you get a balloon payment finance plan that you can afford, allowing you to keep driving without any disruption.
My Car Credit has a large panel of lenders, specialising across all credit profiles. Start by using our free balloon payment calculator to work out your expected monthly payments, rate of interest and total amount payable.
Whatever your circumstances, you can apply for balloon payment finance. We’ll give you an instant, online decision on balloon finance. This is initially a soft search to apply, meaning that you can shop for balloon refinance without impacting on your credit score. Just bear in mind that should you progress, some lenders may perform a hard search on your credit file.
As a car finance broker, we compare a network of different deals from our panel of trusted lenders. This is a vital step to ensure you get the right deal for your circumstances. After all, car finance and balloon payments are far from one-size-fits-all.
Should I pay off or refinance my balloon payment?
There’s no single answer to which of these options is better. Both have their pros and cons – and it depends on your personal circumstances, preferences and priorities.
By paying off your balloon payment, you’ll:
- Reduce the amount you pay overall by avoiding additional interest
- Own your car outright the moment the balloon payment is paid
- Use up your savings, leaving you less prepared for other outgoings
On the other hand, refinancing has the following pros and cons:
- There’s no need to scrimp or borrow money from elsewhere
- You’ll keep any savings you do have for other outgoings or just a rainy day
- You will pay a little more over time in interest on your outstanding finance
Even with these benefits and drawbacks explained, you might be unsure about which is the best option. For example, you might have money set aside to pay for your balloon payment, but also have other things to pay for like home improvements.
My Car Credit can help you determine which is the best way forward by finding you a suitable deal for your balloon payment finance, so you can make an informed decision.
Can I get balloon payment finance with bad credit?
If you’re looking for balloon payment finance with poor credit, you’re not alone. Many of the factors behind a poor credit score relate to affordability, such as debt or late payments, meaning drivers with poor credit don’t have money set aside for their balloon payment.
At the same time, you might want to avoid applying for car finance on a new vehicle through fear of rejection – which is why you don’t want to just return your car and avoid the balloon payment altogether.
Whatever your circumstances, My Car Credit is ready and waiting to help. We have a wealth of experience with poor credit applications. While individual companies might reject applications with a less-than-perfect score, we work with a range of lenders to increase your chances of an approval.
Our soft search approach is crucial to this. As a driver with poor credit, you might be worried that applying to refinance your balloon payment could actually damage your score further. That’s usually down to lots of hard searches without approval, as they stay on your credit file. Fortunately, we always start with a soft credit check to match you with a suitable deal. Only then will lenders perform a hard search on your file.
Above all else, working with an experienced broker like My Car Credit can help you improve your credit score over time. We’ll match you with deals you can afford so you’re less likely to miss payments in future.
Broad panel of trusted car finance lenders
Being part of the UK’s largest motor finance broker, Evolution Funding, we have access to the largest panel of car loan companies. From Alphera and Advantage to Moneyway and Moneybarn, we have established relationships with reliable finance providers which have all been vetted and approved.
This matters for several reasons. Firstly, it increases our chances of finding you a car finance deal suitable for your circumstances. An individual lender might reject your application altogether. Or they could offer a short term with higher repayments that you just can’t afford. Having more lenders on your side means you’re more likely to get a deal that works for you.
Additionally, it saves you time in comparing deals. Whether you’re comparing quotes from tradespeople or shopping for a new TV, it’s always advisable to compare prices and weigh up your options. With access to our panel of lenders, you can do this all in one place through My Car Credit – then have the most suitable option served to you on a silver platter.
Require more help?
Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!
or call 01246 458 810