This innovative product offers equal monthly payments that are significantly lower than those for equivalent Equal Payments product. Payment of a portion of the principal, called the balloon, is deferred until the end of the agreement. The proportion of the principal which represents the balloon is dependent on the term of the loan:
| Term | 2 years | 3 years |
|---|---|---|
| Minimum Down payment | 25% | 25% |
| Maximum Balloon | 25% | 20% |
Once the loan has reached the end of its term the three following options are as follows:
| Option 1 | A lump sum payment for the total amount of the balloon on the due date |
|---|---|
| Option 2 | Refinance the balloon
Note: The maximum term for an extension is one year |
| Option 3 | Roll over the balloon into the purchase of a new vehicle with GMAC-SAIC finance.
Note: This requires the customer to apply for a subsequent loan with GMAC-SAIC. The market value of the initial vehicle will be assessed and used to pay out the balloon repayment with any surplus put towards the downpayment of the new vehicle. |
The following option is also available with the use of a balloon payment facility:
Upgrading your vehicle during the loan term
If you wish to upgrade your vehicle at any time during the loan term, subject to our credit approval, you have the option to exchange your vehicle for a new one. The Balloon Payment product allows you to enjoy the benefit of lower monthly payments while still retaining the flexibility to exchange your vehicle for a new one at any time during the loan term.