munsabin

Hi all,

Just wondering what your balloon payment is for your lease.

- Selling price?
- Interest Rate?
- Monthly Lease Payment?
- Term (24 months, 36, etc)?
- Balloon payment?

Thanks!

mike127

you may want to check audi.ca and having "built" your dream car, most of those details are on the financing options. FWIW, for trade-in and cash, I got a 4% discount off MRSP

yvantheterrible

Calculate total interest paid over the life of the purchase depending on your financing choice, ask your sales rep to give you how much interest you will pay in total, you'll be surprised. Usually a balloon payment at the end of a loan will lower your monthly payments but you will end up paying more interests over the life of the loan.

https://www.cibc.com/ca/loans/calcul...ml?utrc=S153:2

For a $54,000 loan, 48 months term @3.9% interest your payments will be; $1,217 monthly. Total interest paid will be: $4,409

Same amount, term and interest rate with a $25,000 balloon at the end of the 48th month, your payment will be $749.19 monthly, total interest paid will be $6211 and you still have to come up with the $25,000 balloon payment or re-finance the $25,000.

Quite expensive to have a balloon.

https://financial-calculators.com/ba...ent-calculator

Your dealer may calculate total interest a little differently but as I said ask the total interest paid depending on financing options.

snagitseven

Maybe in Canada it's different than the U.S. but here there is no "balloon" payment as such on a closed end lease. If you want to buy the car at lease end it's simply the contract residual amount plus applicable sales tax. Otherwise, you just turn the car in and walk away. (Assuming your mileage is within the contract allowance and there are no condition issues). Some leases have a termination fee but that is rare these days unless you end the lease early.

yvantheterrible

Correct, a balloon payment is usually at the end of a loan not a lease.

snagitseven

And, in the U.S. at least, it would be very unusual to find an auto loan with a balloon payment feature at the term end.

yvantheterrible

This is how it works in Canada,

Audi Select
Audi Select gives you the freedom and satisfaction of owning, combined with the flexibility of a lease-type payment schedule, and lower monthly payments.

With Audi Select, you make equal monthly payments over the term of your contract and a payment for the remaining amount (called a balloon) at the end. You’ll enjoy monthly payments that are much lower than a typical retail loan, no kilometre limits, and your choice of contract terms ranging from 24 to 60 months. Plus you can pay off your loan at any time without administration fees.

Similar to a lease, at the end of the contract you have the choice of paying off the balance (balloon) or refinancing.

VM

I've never understood the point of Audi Select except in some very unusual income/cash flow situations, e.g. someone has a high paying job but tons of student debt, so this way they pay less for the car in the short term, redirect the saved cash towards the student debt, and then once that's paid off, they can save up for the balloon payment at the end.

Otherwise what's the advantage of this over a lease? At least with a lease, if the residual is way over market value or you just don't want the car anymore, you can hand it back...

And if the end goal is to buy the car outright, I assume you end up paying a lot more in interest this way than on a conventional loan...