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Unsecured Deferred Car Purchase Loans


With an UDCPL a borrower sets up the loan with a financial institution, not necessarily with the manufacturer’s finance house. Essentially a percentage of the loan is deferred until the end of the term, at which point it has to be repaid.

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Typically the term of the loan will be between one and four years. So, for example, a loan over one year could be deferred by say 60 per cent. Once the loan is repaid in full, the car is fully owned and can be used, for example, as a deposit for another car loan.

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