are balloon payments a good idea for a car purchase 
a balloon payment may be suitable for borrowers who are in urgent need of a car but are unprepared to deal with a large monthly payment in such cases the borrower will probably pay a higher interest rate than is charged on a conventional car loan most importantly the borrower must keep an eye on that looming balloon payment at the end of the loan term and be ready to pay it the bottom lineballoon payments are relatively common for business ventures they lower financing costs during the early stages of a new project and allow the business time to realize some profits from the venture before they need to pay off the balance of the loan they are available to consumers but typically only for those with a hefty down payment and a healthy credit rating 