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A vehicle payment plan is an agreement between a buyer and seller to pay for a car in installments, as an alternative to traditional auto loans. This arrangement may also apply to other large purchases, like appliances or jewelry. It benefits buyers by easing the upfront financial burden through monthly payments, while sellers can earn more by charging interest. Though the buyer ends up paying more overall if interest is included, this option makes owning a vehicle feasible for those who cannot pay the full price upfront. Payment plans typically include specific terms tailored to the costs associated with vehicles, ensuring clarity and protection for both parties involved.