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I don't know when this started, looks like Penfed is offering a new kind of auto loan...not sure how long this has been around in the industry. Thoughts?

Penfed said:With the Auto Payment Saver Loans, you will be able to make a lower payment than what the conventional auto loan would offer, yet at a higher interest rate. Then, at the end of the loan, you will owe the remaining balance of the loan itself. At this juncture, you may choose to payoff the loan or sell, trade, or refinance the vehicle.

It's just a balloon loan. They've been around a while for autos. IMO, it's a lot like leasing, except you can't just give the car back at the end of the term (without a repo hit on your credit, anyway).