A balloon payment, also known as a residual, is a great feature to include with your loan as it allows you to enjoy a new car while reducing your monthly repayments.
But if you are nearing the end of your loan, and that balloon payment is about to fall due, the thought of making that lump payment could be keeping you up at night.
A balloon payment is designed to match a cars resale value when it falls due, but if you've fallen in love with your current car, you don't have to sell it to make the payment. Refinancing allows you to deal with the balloon repayment and keep your car.