Read the final payment as well as the monthly figure
This model makes n regular payments at month-end and pays the balloon alongside the nth payment. The balloon is part of the original principal still outstanding at that point. It is not an extra borrowing fee or a guaranteed resale value. Setting it to zero reproduces a fully amortizing loan.
The comparison holds the borrowed amount, term and interest rate constant. Deferring principal generally increases interest even though monthly payments fall. The schedule shows the final regular payment and balloon together so that the remaining balance reaches zero.
Check the actual agreement
Use the nominal annual interest rate for monthly accrual. The CFPB explains how interest rate differs from fee-inclusive APR. This tool excludes fees, insurance, taxes and lender-specific rounding. It is not a lease or a complete PCP quotation: purchase options, mileage rules and return conditions need separate review. Refinancing or selling the vehicle may not cover the balloon when it falls due.
Compare ordinary car repayments and extra payments, refinancing and a depreciation scenario before committing to a final payment.