AFG Canada offers an intelligent solution by providing a user-friendly, customized web-based calculator designed to make it easy for your credit union to offer low payment financing to your borrowers. Through a simple process, AFG Canada’s technology determines the vehicle’s balloon payment and residual value by term. The AFG Balloon Lending program has on-going, in-depth support and numerous options for credit unions and their dealerships.
The AFG Canada Balloon Lending program is the ultimate win-win situation – your consumers get great value from a financial institution they trust, and you get increased loan volume and higher yields.
Why Consumers Use Balloon Financing
A lower monthly payment
A new car more often
Less initial cash outlay
More car for the money
Generally less maintenance costs
Latest technology and more safety features in newer vehicles
All Fees Disclosed
All fees are fully disclosed before the member signs so there are no hidden fees.
No Down Payment Required
There is no down payment or security deposit required as part of the leasing program.
Simple Interest Calculation
Simple interest is the fairest lending calculation methodology which helps keep the member’s payoff balance lower.
- Purchase and keep
- Purchase and sell
- Trade in at a dealer
- Convert to a conventional loan
- Turn in at maturity
Early Termination Option
Many balloon loan programs still impose large penalties, even thousands of dollars if the loan is paid off early. Because the Credit Union Balloon Loan is simple interest, there is no front-loaded interest owed should the loan terminate early. The member is required to pay off the outstanding loan balance through a trade or purchase.
Adjustable Mileage Limit
Annual kilometers of 18k and 24k are available as well as custom mileage above 24k. A custom mileage loan can be created with mileage limits that fit each member’s personal driving patterns.
Member Assistance at Maturity
The End of Term Process is designed to promote education of members to assist them in making informed decisions regarding their End of Term (EOT) options. Member education includes AFG Canada’s end of term brochure and personal teleconsulting by one of our expert customer service representatives.
The credit union member is contacted prior to the expiration of his/her loan by an AFG Canada’s customer service representative. The customer service rep works with the member regarding their maturity options and how to conclude their responsibilities based on her selected option at the end of the loan. The turn in options are discussed at the time of Balloon Loan-end contact, beginning 120 days prior to the scheduled termination date.