N/APosted on - 09/30/2012
I would like to ask if what is a bubble payment? What if I am going to buy a car or a computer online how the deal process works? What kind of payment is this and what are the advantages and disadvantages when we are going to try this kind of payment? I hope you can give me an accurate and correct idea and hoping that this is a safe method.
I would like to ask if what is a bubble payment?
Your question is a bit tricky but I believe I may be in a position to help! The bubble payment is a type of payment that you pay in bits such as deposits once you agree with the seller or dealer especially on transactions involving cars or computers. You pay the seller on deposit once you have agreed on the payment then continue paying installments till the payment is approved and the car can be yours. It can also be lumpsum at the end of the loan payment. It reduces the monthly payments and also increases affordability.
The customer is also able to get a higher loan because the amount to pay at the end of each month are low.
I hope this solves your query.