How to purchase a Genesis

At the beginning of the lease contract, a mileage limit is established. This is the maximum number of kilometers the vehicle can be driven during the contract period. For example, 10,000 kilometers per year.

The length of the lease is agreed between the lessee (the customer) and the lessor (the leasing company). Typical contract periods are between one and five years.

The monthly lease payments are calculated based on the agreed mileage limit and the expected depreciation of the vehicle over the contract period and the. The higher the expected mileage, the higher the monthly payment may be.

If the lessee exceeds the agreed mileage limit, additional mileage costs may apply. These costs are usually calculated per extra kilometer and are specified in the contract.

At the end of the contract period, the lessee returns the vehicle. The lessor checks the vehicle's mileage and assesses its condition according to the agreed-upon return conditions. Any damage or excessive wear and tear may result in additional costs.

The lender (typically a bank or financial institution) approves a loan amount for the borrower (the customer) to purchase the vehicle. This loan amount is usually based on the vehicle's purchase price minus any deposit or equity the borrower contributes.

During the term of the balloon financing, the borrower makes monthly installments consisting of interest and principal payments. These installments are meant to gradually repay the majority of the loan amount over the term.

Unlike other financing methods, balloon financing involves a larger final payment known as the balloon payment, which becomes due at the end of the term. This balloon payment typically represents the estimated residual value of the vehicle. The borrower has the option to either pay off the balloon payment in full or refinance it.

a. Pay in full: The borrower can pay the balloon payment in full and own the vehicle.

b. Refinancing: The borrower can refinance the balloon payment or arrange for additional financing to continue making installment payments toward the balloon amount.

c. Return the vehicle: If specified in the contract, the borrower can return the vehicle to the lender. In this case, no payment of the balloon payment is required, but there may be costs associated with excessive wear and tear or damage.

d. Sell the vehicle: The borrower can sell the vehicle and use the proceeds to settle the balloon payment.

It's important to note that the amount of the balloon payment and the contract terms will depend on the specific financing company. It is advisable to carefully review the contract terms and consider financial capabilities to ensure the balloon payment can be paid or refinanced.

The lender (usually a bank or financial institution) approves a specified loan amount for the borrower (the customer) to purchase the vehicle. 

The loan term agreed between the lender and the borrower can range from several months to several years, depending on the agreement.

In a linear loan, the monthly installments remain constant throughout the loan term. The total loan amount is evenly distributed across the monthly installments, resulting in equal principal and interest payments each month. WIth each payment, the loan balance decreases.

The borrower pays the agreed monthly installment to the lender. As this is a linear loan, the repayment amount remains the same for the entire term of the loan. Consequently, the loan balance decreases with each payment.

At the end of the loan term and upon full repayment of the loan, ownership of the vehicle fully transfers to the borrower.