Balloon Payment...what's the point exactly?

I have looked at values...honestly...its not clear. 1st of all, these Alfa's...MiTo and Giulietta are supposed to be the saviours of Alfa, the NEW types where that guy from BMW now wors at FIAT...the interior guy. So the build quality is supposed to be better, the engines etc and after sales is supposed to be better.

After a year, the MiTo's value fell by an avg 10% or a little more...it was R249k, some are now going for just over R210k. But like I said, I can't get a value estimator. And one can't really estimate the value of a car that's not even here yet. I think I'll have to go for much less residual just to be safe...but still in the R5500pm bracket.
 
its very difficult to work out resale.
the effect of demand and reputation play a huge role even though they don't indicate quality or reliability.

two examples of good cars in general having poor resales is the Honda Accord and the Volvo S40.
 
Geez.

A residual is not strictly bad! It's a depends or maybe answer!
 
ALFAHOLIC said:
LOL...I agree, its not all bad, ppl just look at the...what if the value exceeds the baloon amount...and they freak out...check this website on how the ou's in the UK are leasing theirs...intersting...is/can this be done in SA?

http://www.mangoletsi.com/alfa/special-offers/alfa-giulietta.html
Click to expand...

You don't give up easily do you? :D You have three options -

1) no residual

2) a small residual (10-20%) - then you don't have to worry about value, but will impact your cash flow when you change cars - pay-in + deposit

2) substantial residual with guaranteed buy-back.

Case closed. :)
 
SiriS said:
You don't give up easily do you? :D You have three options -

1) no residual

2) a small residual (10-20%) - then you don't have to worry about value, but will impact your cash flow when you change cars - pay-in + deposit

2) substantial residual with guaranteed buy-back.

Case closed. :)
Click to expand...

I take option 3...I'm looking at test driving 2 cars...

Have been looking at 2cnd hand 330d's with sport pack...18's and lowered!!! And G6 GTi...both must be white...what I like about the BMW 330d 07/08 model..they are under 280k and with less than 50k kms on...my word! No residual needed for a BMW then...AND it will hold its value my word! But I want new(ish)car...

option is, get BMW without residual with about 60k km's on...sell it in a year's time when the Giulietta is cheaper? Hows that for genius?My mother told her friends about my genius...and this is it coming through now!
 
what ever you do, you know when you sleep at night weather you can afford the car or not. i have seen guys make stupid mistakes, putting their families through hell because of an expensive car they can't afford. just buy a car you like and can afford comfortably, not just afford.
 
koeks said:
what ever you do, you know when you sleep at night weather you can afford the car or not. i have seen guys make stupid mistakes, putting their families through hell because of an expensive car they can't afford. just buy a car you like and can afford comfortably, not just afford.
Click to expand...

Would a BMW 330d doing 100km/h be faster than a Kia Picanto doing 100km/h? :whistle:
 
If buying on residual do not put down a deposit if you can. If your credit rating is good there's no need for a deposit. Why the hell throw a substantial amount of money into a liability upfront. Take a 20% residual and trade in after the term, unless you want to drive a car that's worth less than your TV for eternity. Personal preference I guess
 
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