Balloon Lending Program

At Auto Financial Group we focus exclusively on web-based vehicle financing solutions for financial institutions. As a result, we deliver the most compelling and affordable programs available.

The AFG Balloon Lending program includes an internet-based residual value and payment quoting calculator that makes it easy for you to offer a branded balloon lending solution to your consumers. We mitigate the residual value risk by guaranteeing the predetermined residual value of the vehicles. We also eliminate red tape by managing the entire end of term process for your institution.

The AFG 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.

Check out the AFG Balloon Lending program – your borrowers will thank you and you’ll thank us!

Why Choose the AFG Balloon Lending Program

Benefits for Lenders

  • Market differentiator that drives vehicle loans to help grow auto loan portfolio
  • More interest income for your financial institution due to higher average daily balances
  • Increase service offerings to your borrowers and better compete in the auto-financing market
  • AFG’s Balloon Lending program positions your financial institution to recapture consumer loans currently being lost to competitive residual based financing products
  • 100% of the residual value is guaranteed to your financial institution by AFG on new and used vehicles
  • Easy to use internet-based residual value and payment quoting software on a secure, password-protected website
  • AFG provides initial and on-going training for the balloon lending program in addition to marketing support
  • The AFG Balloon Lending program is customized for your institution and carries your brand name
  • AFG maintains quoting technology and ALG Residual Value updates
  • No end-of-term hassles – Auto Financial Group handles disposition of the vehicle

Benefits for Dealers

  • Helps move pre-owned inventory
  • Market differentiator
  • No cost to the dealership

Benefits for Borrowers

  • Ownership benefits because vehicle is titled in borrower’s name, giving them more options at and prior to loan maturity
  • No down payment required and no prepayment penalties
  • Lower monthly payments – up to 40% less than conventional loans
  • Borrower receives the flexibility of a standard installment loan combined with the benefits of leasing with no cash due at signing
  • Borrower can finance both new and used vehicles up to five years old
  • Borrower can choose to surrender vehicle to AFG at loan maturity in lieu of paying the final balloon installment
  • Low disposition and over-mileage fees
  • Borrower owns (vehicle is titled in the members name) not rents (leases) the vehicle, so they can privately sell, trade or refinance anytime during their loan term with no penalty
  • Get more car for the money – drive a better vehicle for the same amount of money as a conventional loan
  • Borrowers can carry the level of insurance of their choice
  • Plenty of options at the end of the term, including:
    • Refinance remaining balance and keep the vehicle
    • Sell vehicle privately
    • Pay remaining balance in full and keep the vehicle
    • Trade vehicle in to a dealer
    • Return the vehicle and walk away
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