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a vehicle payment plan is created between the buyer and seller of a vehicle that both agree to have the total price of the car to be paid in increments why use a payment plan agreement while auto loans are common another option is structuring a legally binding payment arrangement directly with the seller this type of agreement can be standard practice for other large purchases such as appliances jewelry and more creating a payment plan can be considered a win-win in that it removes the upfront financial burden for the buyer by dividing the cost into monthly payments and it allows the seller to make more than the sales price by charging interest the buyer will end up paying more money for the car if the seller charges interest but if they need the vehicle and arent able to pay the total price out of their pocket a payment plan might be the next best option what to include in the payment plan car payment plans usually have a few special terms especially since vehicles can be so expensiv
