Finance Q&A - Finance Options

What is a balloon payment?

Hi, I want to take out Hire Purchase finance and noticed that balloon payment is mentioned, could you explain what it is? Thanks

Mary

Answer from the Stoneacre finance team:

Hi Mary, thank you for your question.

A balloon payment is typically paid at the end of the finance agreement, such as Personal Contract Purchase and acts as a final payment to own a car, while Hire Purchase finance doesn't have one.

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