Installment Payment

Installment payment is an agreement where a buyer pays the total amount for a product or service in several parts instead of all at once. For example, if someone buys a new car and chooses to pay the price in 12 monthly installments, this is called an installment payment.

For residents in Germany or Austria, it is important to know that installment payments often come with interest. When you agree to an installment plan, you should carefully review the terms, especially the amount of each installment and the duration. A common mistake is underestimating the total costs due to interest. Relevant laws include §§ 488 ff. BGB, which outline the regulations for loans and installment payments.

Related documents on DokBrief:

• Application for Installment Payment — Information on how to apply for installment payments.