BALLOON PAYMENT OPTION from Federal Pacific Auto Finance & Ford Hyundai

To reduce your monthly payments you can take advantage of our BALLOON payment option.

How does it work and are you eligible? Ask one of our consultants for more information!

Explained for you

What is a Balloon payment option and what benefits does it have?

A balloon payment option reduces the rate that your principal is repaid and has the following features 

  1. Lower monthly repayments
  2. Easier on current cash flows
  3. But a higher amount of interest paid over the term of the loan
  4. And a large final payment to settle at the end of the term
  • 3 year loan – 30% of the original loan amount
  • 4 year loan – 25% of the original loan amount
  • 5 year loan – 20% of the original loan amount


An $80,000 loan with interest rate of 14% per annum over a 3 year term

Example A:          No balloon payment.

There will be 36 equal monthly repayments of $2,782 per month

Example B:          A 30% balloon payment ($80,000 x 30% = $24,000)

There will be 35 equal monthly repayments of $2,295 per month and the 36th payment of $24,000.

The customer then has a number of options available

Option 1:             Pay balloon off in cash and own the vehicle


Option 2:             Apply to FPAF for a new loan to settle the balloon repayment over a term of 12, 24, 36 months


Option 3:             Trade vehicle in to Ford Hyundai. The trade in amount will be used to fully settle FPAF loan and the balance (if any) will used as a full/part deposit on a new Ford/Hyundai vehicle.


Option 4:             Return vehicle to be sold by Ford Hyundai

  1. At a guaranteed price negotiated at time of delivery, or
  2. Sold on your behalf by Ford Hyundai who will take 10% Consignment fee.


Any proceeds left after FAPF loan is fully settled will be returned to the customer.


Please speak with our trade advisor for more information.
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