Business and Personal Finance Dictionary

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• LEASE-LIKE LOAN
  
  Also known as payment saver loan. It combines features of a lease and a conventional auto loan and is most often offered by credit unions. Payments can be as much as 30 percent less than a conventional amortized loan, because a lease-like loan has a big balloon payment at the end. Requires no down payment or security deposit. Mileage allowance is usually higher. At the end of the loan, the borrower can sell or trade in the car and pay off the loan balance, or keep the car and refinance the amount owed, or return the car to the lender as payment for the balance.
  
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