[kdoske]

Originally Posted by Chief762x39

Yes I know about the dangers of the loans, what I need to know is who is offering them (other than PenFed).

google it, you will have ton of results im sure.

I'm pretty sure most places wont issue a balloon loan unless you have fairly good credit due to the risk involved for both parties.

The idea behind it is for you to just pretty much pay the interest and then SAVE the remaining money that would of normaly been paid to a normal car loan into a money market or something simliar.

By doing this instead of paying interest you end up making interest and essential get your car interest free. Only problem is most people can't stick to the idea and when it comes time to pay they are screwed.

Another reason to do it would be if you knew you where going to sell the car at the end of your term and hopefully you could sell the car for exactly what it was you owed on the car when your balloon loan was up.

A lot of people get misled thinking that this is a way for them to get a car that they normally wouldn't be able to afford but this is so not true. Its actually for financially responsible people that know they can afford the car the normal way but allows them to flip the system to work in their favor.