Balloon and End-of-Term Planner
A balloon lowers your repayments, but the full amount is due when the loan ends. This planner compares the balloon with what the asset could be worth by then, so you can see whether you are likely to have equity towards your next purchase, or a shortfall to plan for. It works for cars, boats, caravans, motorbikes, trucks and equipment.
Using the balloon planner
Enter the asset price, the amount financed, the term and the balloon.
Choose the asset type and an estimate of how much value it may lose each year.
Compare the balloon due at the end of the term with the estimated value of the asset at that time.
See whether you could have equity towards your next purchase, or a shortfall to plan for.
What it doesn’t include
An actual valuation; resale value depends on condition, kilometres or hours, the market and demand.
Lender limits on balloon size, which vary by lender, asset and term.
Interest, fees and the repayment amount; use a repayment calculator for those.
Wear-and-tear or end-of-term charges that can apply under some products.
Questions people ask
What is a balloon payment?
A lump sum due at the end of a loan. It lowers your regular repayments, but the full balloon must be paid, refinanced or covered by selling or trading in the asset when the loan ends.
How big can a balloon be?
It depends on the lender, the asset, its age and the loan term. Larger balloons are often limited for older assets or longer terms.
What happens if the asset is worth less than the balloon?
You would need to cover the difference, for example from savings or by refinancing. Planning for it early helps avoid a surprise at the end of the term.
Can I refinance a balloon at the end of the loan?
Some lenders will refinance a balloon, subject to an assessment of your circumstances and the asset at the time.
Related: Car finance · Car, boat & asset loans calculator · Equipment finance comparison calculator · Boat loan calculator · All calculators
General information only. It does not take your objectives, financial situation or needs into account.
WOULD YOU RATHER TALK NOW?
The planner is not an application, and nothing is lodged with a lender or checked on your credit file. If you would like help choosing a balloon that suits how long you plan to keep the asset, start an enquiry and Christian will contact you the same business day (Monday to Saturday, 7.30 am to 7.30 pm Brisbane time). No credit check to enquire.