KFS Balloon Loan on GT2

[andyecon]

Has anybody done one of these rather than the lease/buyout? I’m seeing on Autobytel that there is a $4150 balloon cash incentive that appears to stack with the $4500 in customer cash available for purchase. That would make it more attractive to me than leasing, since it would also avoid the inception fee (I assume) and I am not so concerned about the resale value in two years.

 

[Aarvix]

I did a balloon loan rather than lease buyout (Texas taxes you twice on lease buyouts). The incentives were similar to lease cash and with the dealer discounts I saved nearly 10K off sticker (the balloon cash incentive was higher in 2019).

Balloon loans are very predatory, NEVER take one to term. I refinanced mine before the first payment even showed up on the KMF website.

edit: spelling

 

[andyecon]

I did a balloon loan rather than lease buyout (Texas taxes you twice on lease buyouts). The incentives were similar to lease cash and with the dealer discounts I saved nearly 10K off sticker (the balloon cash incentive was higher in 2019).

Balloon loans are very predatory, NEVER take one to term. I refinanced mine before the first payment even showed up on the KMF website.

edit: spelling

Thanks, I actually lived in Texas until 2019 and used a Balloon-type loan for a BMW 330e

I would immediately refinance the KFS Balloon with my credit union.

 

[Aarvix]

During the initial negotiations the salesman never mentioned balloon financing, I had to insist that they show me the incentives.
I don't know whether this was ignorance or they've been told/trained to avoid it because of the predatory aspects.

Balloons aren't even legal in some states.

Nevertheless, it's a good option for those savvy enough to take advantage of it (and not get screwed when the balloon pops at the end )

 

[andyecon]

My salesman called me after I asked for the Balloon quote and was like, "You know you are liable at the end of this, right?" So I think you are right, they must have people who don't understand and then get pissed after the fact.

 

[andyecon]

In case others are researching this, I’ve had some dealerships say they won’t do balloons, others way that can in principle... not sure if it is state law or what.

 

[matt0127]

Considering doing balloon finance to upgrade to gt2, also in TX. Did you immediately pay it off or just refinance it? So bonus cash stacks with the balloon bonus cash? It balloon financing as complicated as lease buyout to figure out what the "buyout" price is?