Vehicle
Balloon due — what now?
The optimiser picks a balloon and hold. This page is the sequel: refinance, pay out, sell, or trade, plus a rate-shock and extra-repayment check.
Balloon due
$24,000
Expected sale
$62,356
Loan payout
$24,000
Sale equity
$37,356
Pay out balloon
Clear the residual in cash and keep the car unencumbered. Ongoing cost is running costs only.
- Cash you must find
- $24,000
- Monthly after
- $0
- Equity position
- $61,356
- Keep the car
- Yes
Refinance residual
Roll the balloon into a new 36-month loan at 10%.
- Cash you must find
- $0
- Monthly after
- $774
- Equity position
- $38,356
- Keep the car
- Yes
Sell privately
Sell at expected value, pay out the loan, and take the leftover equity (or fund a shortfall).
- Cash you must find
- -$37,356
- Monthly after
- $0
- Equity position
- $37,356
- Keep the car
- No
Trade in
Dealer price is expected value minus the trade-in discount, then the loan is cleared.
- Cash you must find
- -$33,356
- Monthly after
- $0
- Equity position
- $33,356
- Keep the car
- No
Rate risk
What if the rate is higher — or you pay extra?
- Payment vs today
- $293
- Interest vs today
- $2,081
- Interest saved by extra
- $785
- Residual cut by extra
- $6,785
- Extra cash paid
- $6,000
- Net of extra vs interest+residual
- $1,569
Extra repayments reduce the residual and interest. If the net figure is negative, the extra cash is not earning its keep versus simply holding the contractual payment.