Just trying to confuse you. You would be leasing in my opinion
Balloon Financing combines the privileges of ownership with the benefits of leasing:
You own the vehicle and have most of the same benefits as traditional financing.
The monthly payments are less than traditional financing thus providing more monthly disposable income.
Good for customers interested in tax depreciation (please consult your tax advisor).
Sounds like the old mortgage finance scheme: hook you in with low monthly payment for x number of months, and come up with a balloon payment (usually a large amount) at the end. The trick is to re-finance before the balloon payment is due.
Sort of like a lease. In a lease the title is in lease company as the owner. In the balloon it is a loan and the title will be in your name as the owner with a lean on the car by the finance company. At the end of time you pay off the balloon and the car is yours or walk away like a lease. You need to find out if it is open end or closed end. That you do not need to pay any difference if car value is less than resale value.
Well according to what I just found, this is in fact a true finance structure. Now I have to research the apr terms, im positive they're higher for the convenience of the back end of the payment. And a re-finance would definitely be in order.
**Once all payments have been made, you will own the vehicle