Finance Options
Whether you’re purchasing a vehicle through your business or privately, whether you’re looking to buy or lease, whether you want to keep the vehicle for a long time, or trade it in – Volkswagen Financial Services offers a range of finance products to suit you.
To read more about the options available to you, select from the menu on the left.
Balloon Payments
A balloon payment is an inflated instalment that falls due at the end of the credit agreement.
- Under the National Credit Act, a balloon payment can now be offered to any consumer on an instalment sale or lease agreement.
- The balloon amount is traditionally associated with a projected estimate value.
- The estimate value is influenced by the length of the credit agreement (i.e. 36, 48 or 60 months), and by the market sentiment toward the vehicle being financed.
- Since the risk associated with a balloon payment is borne by the customer, he/she is liable for the full balloon value in the final month of his/her contract. The balloon forms part of the payment stream.
The new National Credit Act came into effect on 1 June 2007. To find out more about this Act and how it may affect you, read the National Credit Act Summary.
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