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Financing that Fits

What to Know About Financing. A little knowledge goes a long way.

Buy a Vehicle

With a wide selection of financing options and flexible terms, we can help you keep your monthly payments where you want them.
Flexible terms for virtually any budget

Online account management. Check your payment status, balance and statements anytime, anywhere

Easy payment options. Set up monthly or one-time payments from your checking or savings account

On-the-go access. Keep tabs on your account with the Ally Auto Mobile Pay app.

Lease a Vehicle

Ally SmartLease® has shortened financing terms that give you the flexibility to drive a new vehicle more often.

Shorter terms, more flexibility

Lower payments. Leasing usually means your monthly payments are lower than buying.

Trade up more often. A lease allows you to drive a new car more often.

Lease pre-owned. Lease eligible pre-owned vehicles with Pre-Owned SmartLease.?.

What to Know About Ally Pre-Owned SmartLease?

Ally Pre-Owned SmartLease lets you choose eligible models that:

  • Have a clean history report
  • Are fewer than 4 model years old
  • Have fewer than 75,000 miles

No matter which eligible pre-owned vehicle you select, you’ll receive automatic Guaranteed Auto Protection and the ability to purchase maintenance coverage similar to that offered for new models.

Ally Buyer’s Choice

Ally Buyer’s Choice combines the advantages of buying and leasing, giving you the option to continue making your regular lease payments or sell your vehicle to us at a predetermined price and date.

Ownership with flexibility

How it works:

At either 48 or 60 months on your Special Prepayment Date, you can:

  • Sell your vehicle to Ally at a predetermined price (minus excess mileage and wear)
  • Keep the vehicle and continue making payments until the end of the contract term

Ally Balloon Advantage?

Ally Balloon Advantage keeps your monthly payments lower by attaching a larger portion of your payment to the end of your contract.

Lower monthly payments

How it works:

  • Ally Balloon Advantage includes a fixed APR and monthly payments throughout the contract with a larger payment at the end
  • You can sell or trade in your vehicle at any time as long as you pay off the remaining balance

What to Know About Ally Balloon Advantage?

Vehicles that qualify for Ally Balloon Advantage include:

  • All new Mitsubishi vehicles
  • Used vehicles up to 4 model years old excluding Saab and Suzuki

Want to know more? Here are the facts about balloon financing.

You’ve chosen the perfect car and now it’s time to sign on the dotted line. When it comes to financing, knowing your options can help you make the right choice. One option that may be available is balloon financing. Here are some things you’ll need to know if you’re considering balloon financing.

What Is Balloon Financing?

As the Consumer Financial Protection Bureau points out, the term “balloon” refers to a finance contract  in which you’ll have a large, one-time payment at the close of the term. This typically means monthly payments that are generally lower  than with traditional financing  leading up to the final, larger, balloon payment due at the end of the finance contract. This way, consumers spend less on a month-to-month basis, but are responsible for the balance left on the finance contract at a predetermined time.

To better illustrate this idea, let’s look at how a balloon mortgage works. Typically, these home loans have terms of five or seven years, while the payment is still calculated based on a 30-year amortization, according to Bankrate.com. You can enjoy lower payments over the term of your loan, but once the term is up, you’ll have to plan for the possibility of selling or paying the outstanding amount owed through refinancing the loan – if you qualify – or paying with your own funds. The same principle holds true with balloon auto financing; there’s a predetermined term with fixed installment payments until the final lump sum is due. As with a mortgage, you will have to pay the balloon amount, and that may result in you having to sell your car or refinance.

What Are the Advantages of Balloon Financing?

When you choose balloon financing, your monthly payments are typically lower than payments in a traditional finance contract, however the APR rate is generally higher.  This can provide flexibility to better manage your cash flow throughout the term of the financing. As WiseGEEK.com points out, financially savvy consumers can use that extra cash in their pockets each month however they choose, anything from investments to other expenses.

What are the Disadvantages of Balloon Financing?

It can be very intimidating to see one large lump sum of money due at the end of your finance contract. A balloon financing contract could be advantageous only if you are prepared to have the money necessary to make the balloon payment when it is due.  You may be able to satisfy the balloon amount by trading in your vehicle.  However, because vehicle resale values and credit conditions may change, you should not rely solely on your vehicle’s potential future trade-in value when considering your ability to make the balloon payment.  For example, if the trade-in value of your vehicle ultimately is less than the balloon amount, you’ll have to pay the creditor the difference.  To make this work for you, it requires a lot of planning and consideration.

Balloon financing can be a viable option to those looking for auto financing. As with any financial decision, it’s important to research your options and consider your unique situation. Once you have all the facts, you can determine what the right choice is for you.