If you trade in the car before the balloon payment is due, you still need to pay off the total sum of all the remaining monthly payments. Just because you sell the car or trade it in does not magically make the amount borrowed disappear.
Also, according to BMWFS, a M3 coupe has a 31% residual after 5 years....it makes sense because the next M3 would be out by then. And my bet is the balloon payment will be higher than this residual value.
Originally Posted by ac3
What am I not understanding? Say I owe $23,000 for a balloon payment at the end of select financing. If I trade the car in prior to that, wouldn't an M3 be worth much more than what I would owe on the balloon? It can't be that good of a deal