Balloon Payment Option

What is a Balloon Payment?

A ‘balloon payment’ is a system that allows you to buy a new car and defer paying part of the loan until the end of the agreement, therefore reducing your monthly repayments.

Why have them?

To reduce the initial monthly repayments. You will have to make one final repayment at the end of the term but we may be able to assist you with a further loan to find that. We believe the car will be worth more than the balloon payment and so the car could be sold to cover the payment. That way you are not building up any equity value in the car similar to many leases.

How does it work?

BHF Finance will lend up to 80% of the value of the car, usually the invoice price.
Take that 80% and defer up to the amounts shown below:

• 4 year balloon – defer up to 30%
• 3 year balloon – defer up to 40%
• 2 year balloon – defer up to 50%

To apply or for further information, please contact the finance team on
0121 446 7788 or email enquiry@bhf-finance.co.uk.