Balloon payments can be a redflag! They sound friendly upfront but can come back to bite you later. A balloon payment lowers your monthly instalment by postponing part of the loan to the end of the contract. The question is: what’s your plan when that big amount is due? If you’re disciplined, plan to trade in regularly, or have cash saved, it can work. But many South Africans reach the end of the term feeling stuck. My rule of thumb: if you wouldn’t sleep well thinking about that final payment, rather avoid it or keep it small. Affordable monthly payments are important, but long-term peace of mind matters more.