With a balloon auto loan the last payment is equal to

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With a balloon auto loan, the last payment is usually equal to the projected residual value of the vehicle at the end of the loan period. This means that the borrower has lower monthly payments throughout the loan term, but must make one large payment at the end to fully pay off the loan. The projected residual value is based on factors such as the car's age, mileage, and condition, and is agreed upon by the borrower and lender at the beginning of the loan.

With a Balloon Auto Loan the Last Payment Is Equal