FAQs

When applying for vehicle financing with a balloon inclusion, applicants may request their preferred balloon amount. Approval is subject to lender guidelines and an assessment of the application.

Yes. Where a self-employed operator meets approval criteria, they may opt for a balloon in their financing.

A balloon payment is due to be paid in full after the last monthly repayment is made.

Yes. Subject to lender approval of the application, a balloon amount may be refinanced. The refinancing may be with the same or a different type of credit facility to the original loan.

A balloon is an optional feature in Chattel Mortgage and Commercial Hire Purchase.

Where a balloon is included in Chattel Mortgage and Hire Purchase, a tax deduction on the overall asset acquisition is realised when the vehicle is depreciated. The amount of the depreciation is in line with ATO schedules. The balloon and repayments are not individually deductible.

Interest is charged on a balloon payment.

An online vehicle financing calculator may be used to work out monthly loan estimates with different balloon amounts.

An online calculator does not have the ability to ascertain the credit profile of users. The rate offered may vary. The device also does not allow for the fees and charges applied by individual lenders. These aspects can result in an offer which differs from the calculator results.

Where a vehicle is sold or traded prior to the conclusion of the financing term, the full payout must be finalised for the sale to proceed. This includes finalising any outstanding monthly repayments plus the balloon. Where a vehicle is traded in, the dealer may liaise with the lender to make the payout. Where the trade in is below the payout figure, the owner must make up the difference.