Leetay

So how does it work.? At the end of the term do you just pay the balance with a car loan check from your bank? or pay cash for the remaining balance? I still don't understand the differences between Premier Purchase and a lease.

225TTR

The difference is that with the Premier YOU own the car; with a lease you do not. A lease typically has early termination penalties, unlike the balloon where you can sell the car whenever you want. You can pay the balloon anyway you want (loan, cash). With the balloon, the car is registered and titled in your name (with a lienholder). With a lease it is titled in the leasing company's name. So-called "flex financing" is usually preferable to a lease as it is less restrictive.

Hope this helps.

wlazo

Ballon payments are attractive, however if you are really thinking of owning the car try to finance it through normal channels.
With a ballon payment you will typically pay over 10% interest, so you can potentially pay $10K or more from what you originally paid for the car....