Why am I charged a processing fee for a car loan?

A balloon payment is a kind of loan that allows you to make lower monthly payments followed by one big payment at the end of the loan term.

Borrowers with poor credit ratings are paying more money on auto loans every month than those with good credit, posing a risk to their financial and economic prospects and the U.S. economy as serious delinquencies on car loans have hit a long-term high.

Buying a new car comes with a lot of additional charges, including sales tax, registration and documentation costs, and destination fees.