With an Ariva Lease:
There is no balloon payment. When the contract period ends, you simply hand the car back.
With traditional finance methods:
- You are liable for any balloon payment (lump sum) which might become payable at the end of the finance term and,
- Since the loading of a balloon payment into your finance agreement results in a slower reduction of the amount outstanding to the finance company over the term of the agreement you may find you owe the finance company more than the sales value of the vehicle when you wish to sell it
A Balloon payment is a lump sum payment which often falls due at the end of a traditional vehicle financing - With Ariva, it's not your problem