Quote:
Originally Posted by humbertin0
This is very interesting. Can you please elaborate a little more on the details and how this works? Excuse my ignorance.
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No worries! I first heard about it in this forum also.
Penfed has a Auto Loan program called "Payment Saver" Loan.
In which you borrow the full amount of the vehicle, pay monthly fees anywhere from 12-60 months and at the end of your term there is a final balloon payment. This final payment is calculated from the start and it should reflect the value of the car at the end of that term. For my car it came out to $37,xxx after 36 months.
They sent me a check yesterday for the payoff, I signed it and forwarded it to BMW Financial.
Now the car should be mine, just financing it, but with smaller payments than regular financing (only $7 more than my lease payment)
Here is more info:
https://www.penfed.org/Payment-Saver-Auto-Loan/
Hope it helps!