The best explanation for the observation that the balloon appears to move backward relative to the car when the car starts moving forward is:
The car moves forward, while inertia keeps the balloon in place.
This is due to the principle of inertia, which states that an object at rest will remain at rest unless acted upon by an unbalanced external force. As the car accelerates forward, the balloon, which is initially at rest, tends to remain in its original position, making it seem as though it is moving backward relative to the car.