Product to debut in New York and California, with other markets across U.S. planned
DETROIT – Ally Financial is launching Ally Balloon Advantage in New York and California today as part of its broad set of financing options for dealers to offer auto customers. The company plans to make the product available in other markets across the United States in the coming months.
Ally Balloon Advantage is a retail installment sale contract with reduced regular payments in exchange for one larger balloon payment due at the end of the auto financing term. Consumers selecting Ally Balloon Advantage can choose from financing terms of 48 or 60 months.
Ally Balloon Advantage is available through GM, Chrysler, Mitsubishi and Suzuki dealers for the purchase of new vehicles and through all dealers that finance used vehicles with Ally. Most used vehicles less than four model years old are eligible for Ally Balloon Advantage. Similar to traditional retail financing, eligible aftermarket products such as a vehicle service contract may be financed with an Ally Balloon Advantage contract.
This new product joins Ally’s array of vehicle financing and leasing options available to consumers. Earlier this year, Ally completed a nationwide rollout of its innovative Ally Buyer’s Choice product, which allows consumers to sell their vehicle to Ally on a pre-determined date during their financing term, at a pre-determined price.
“Ally Balloon Advantage is ideal for consumers who prefer to own their vehicle and have reduced regular payments with a larger payment at the end of the term,” said Tim Russi, executive vice president, North American Operations for Ally Financial. “Although the end-of-term value of the vehicle can vary based on market factors, our goal with Ally Balloon Advantage is for the scheduled balloon payment to approximate the expected value of the vehicle at that time.”
The expected end-of-term vehicle value assumes that the customer makes all payments when due, services the vehicle as prescribed by the manufacturer, and maintains reasonable wear and mileage.
“We recognize the variety of needs for consumers when it comes to purchasing or leasing a vehicle,” Russi said. “Ally wants to deliver a full complement of choices to help dealers meet the needs of a wide range of customer lifestyles and budgets. Dealers may choose to offer a limited trade-in guarantee with Ally Balloon Advantage contracts to build customer loyalty, and manufacturers may consider incentives for both new and certified pre-owned vehicles with this product.”
Consumers in the initial markets interested in finding out if Ally Balloon Advantage is right for them can visit any participating dealer.
About Ally Financial
Ally Financial Inc. is a leading automotive financial services company powered by a top direct banking franchise. Ally's automotive services business offers a full suite of financing products and services, including new and used vehicle inventory and consumer financing, leasing, inventory insurance, commercial loans and vehicle remarketing services. Ally Bank, the company's direct banking subsidiary, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and online checking. Ally's Commercial Finance unit provides financing to middle-market companies across a broad range of industries.
With approximately $179 billion in assets as of June 30, 2012, Ally operates as a bank holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @ally.