auto

What is a lease-like loan?

 

What is a lease-like loan?

The Bankrate.com financial term of the day is: "lease-like loan."

"Lease-like loan" is a tongue-twister -- not so easy to say. But this automobile financing option, also known as a "payment-saver loan," can make it easier for you to get a new car because it combines the advantages of a lease with features of a conventional auto loan. Lease-like loans, which are most often offered by credit unions, require no down payment or security deposit, and the payments can be up to 30 percent lower than a regular auto loan. However, borrowers face a big balloon payment at the end.

Can't decide whether to lease or buy your next car? A lease-like loan might offer the best of both worlds, but watch out for that last payment!

To find the best new cars and the best new-car financing, visit the Auto section at Bankrate.com.

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