Cars · RATIOXA GLOSSARY
Balloon payment
Large payment at the end of finance that lowers monthly payments but keeps the balance and interest base higher for longer.
Simple definition
Large payment at the end of finance that lowers monthly payments but keeps the balance and interest base higher for longer.
Why it matters
This term changes how inputs, cash flows or results should be interpreted. RATIOXA keeps it explicit so two options are compared on the same basis.
Worked example
Finance with a €15,000 balloon needs cash or refinancing at the end.