DETROIT — Ally Financial is launching Ally Balloon Advantage in New York and California as part of its broad set of financing options. 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 that offers 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.

The program is available to car buyers through General Motors, Chrysler, Mitsubishi and Suzuki dealerships that finance new and used retail purchases through 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. Earlier this year, Ally completed a nationwide rollout of its Ally Buyer’s Choice product, which allows consumers to sell their vehicle to Ally on a pre-determined date and at a pre-determined price during their financing term.

“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 of 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.”