A deferred payment plan for vehicle financing allows a purchaser to delay the commencement of their repayment schedule for a predetermined duration, often three months. For example, a consumer acquiring a vehicle in January under such an arrangement would not be obligated to make their initial installment until April.
This type of financing can offer immediate budgetary relief to individuals or families by postponing a significant monthly expense. This can be especially beneficial during periods of financial transition, such as starting a new job or relocating. Historically, these arrangements have been utilized during economic downturns to stimulate vehicle sales.
