Car Balloon Payment Refinance
Got a balloon or residual payment coming up on your car loan or lease? Tell us when it's due and roughly how much, and we'll pass your enquiry to a licensed finance broker who works with a range of lenders. It takes about 60 seconds and there's no credit check to enquire.
- No credit check to enquire
- Free to enquire, with no obligation to go ahead
- A licensed broker calls you, usually within one business day
Check my eligibility
About 60 seconds. No credit check to enquire.
Who we help
- Personal car loan borrowers: with a balloon due at the end of a consumer loan
- ABN holders: with a balloon at the end of a chattel mortgage
- Novated and finance lease holders: with a residual to pay at the end of the lease
- People who want to keep their car: but can't pay the lump sum in cash
- Borrowers whose circumstances have changed: new job, lower income or changes to their credit file since the original loan
Your options when a balloon falls due
A balloon (or residual) is part of the loan you deferred to the end of the term to keep repayments lower. You've been paying interest on it the whole time, and it now needs to be dealt with. There are usually four ways to do that:
| Option | What it means | Worth considering if |
|---|---|---|
| Pay it in full | Pay the lump sum and own the car outright | You have savings set aside for it |
| Refinance it | Take out a new loan for the balloon amount and repay it over a new term | You want to keep the car and the repayments are affordable |
| Sell or trade in | Use the sale proceeds to pay out the balloon | The car is worth more than the balloon, or you want a different car |
| Extend with your current lender | Some lenders offer to refinance the balloon themselves | Their terms compare well with other options |
What lenders look at when refinancing a balloon
- The car's value against the balloon: if the car is worth less than the amount owing, some lenders may want a contribution or a shorter term.
- The car's age: by the time a balloon is due, the car may be five or more years old, and lenders often cap age at the end of the new term.
- Your repayment history: a clean record on the original loan helps.
- Your current income and expenses: it's a fresh application, so the lender reassesses affordability.
Example only: refinancing a $20,000 balloon over 3 years at 10% p.a. works out to about $645 a month, before fees. Your actual rate and repayments depend on the lender and your circumstances.
Start early
Begin looking at your options two to three months before the balloon is due. Ask your current lender for a payout figure, check what your car is worth, and give yourself time to compare. Leaving it until the last week limits your choices.
How it works
- Tell us about your car, the balloon amount and when it is due in the short form below.
- A licensed broker calls you, usually within one business day, to talk through your options.
- If it suits you, they handle the application with a lender that fits your circumstances.
What you'll usually need
- Photo ID, usually an Australian driver licence
- A payout letter or recent statement from your current lender
- Proof of income: payslips, or BAS and tax returns if you're self-employed
- Recent bank statements
- Car details: make, model, year, kilometres and registration
Every lender has its own criteria, so your broker will tell you exactly what's needed for your situation.
Balloon payment guides
- Can I refinance my car loan balloon payment?
- Balloon payments in car finance: what you need to know
- Refinancing to lower your car loan interest rate
- How to trade in a car that's still under finance
- Extending your car loan term: pros and cons
- Understanding early termination fees
Common questions
Can I refinance a balloon payment?
Often, yes. Many lenders will refinance a balloon as a new loan secured by the same car. They'll reassess your income, expenses and credit file, and look at the car's age and value.
What if my car is worth less than the balloon?
Some lenders will still refinance, but they may ask for a contribution, offer a shorter term or decline. Selling the car and paying the difference is another option. A broker can tell you what's realistic.
When should I start looking at refinancing?
Two to three months before the balloon is due is a sensible time to start. It gives you time to get a payout figure, compare options and supply documents without pressure.
Can I refinance a balloon on a business chattel mortgage?
Usually, yes. The new loan can often be structured as another chattel mortgage in the business's name. Your accountant can tell you how that affects your tax position.
Does enquiring affect my credit score?
No. Filling in our enquiry form isn't a credit application. A credit check only happens if you choose to go ahead with an application through the broker.