Has anyone here taken advantage of Mitsubishi's Diamond Option Plan, allowing for a balloon payment at the end of the plan? Sounds spooky, and a little financially irresponsible but I'd be curious to hear any experiences, good or bad

 

i know a guy that bought a house on a balloon payment plan and got screwed. i inquired about it, but it definately wasnt right for me.

 

I did a search and found one response-- it sounds like you wind up financing the car twice, the second time for the "balloon" (or pay it off). I know better but I'll be trading soon and an Evo is at the outside of what I'd like to spend, though is the "dream" car of the bunch I'm considering.

 

It depends on the amount of the balloon..

Normally, the balloon is an obligation to the consumer..which typically is NEVER the right deal..bacause it is waaay too high.(back loaded)

It is basically an open ended lease which in some states is against consumer laws..and RARELY executed.

Here are the ALG residuals for the EVO as of January 05.(just got the book today)

EVO RS
24 49%
36 47
48 39
60 32

EVO STD
24 45%
36 43
48 35
60 29

EVOMR
24 46%
36 44
48 36
60 30

Residuals are a percentage of MSRP.
These figures are what ALG says the car will be worth after the term. It also (depending on the lender) allows you to walk away with no obligation at end provided you are at 12,000 per year.

You can do the math to determine if a balloon makes sense but I would say that a conventional purchase at the lowest APR you can find will be your best method of financing on any new EVO..

Good luck!!

 

no no ballon