Buying a car in installments. The dealer can provide an interest-free loan for up to 6 years. For example, after paying the first installment, you decide that you are comfortable paying $500 monthly without losing your quality of life.
The cost of the car is divided by 500, as a result, you get a payment period.
You can repay the loan ahead of schedule, without penalties, but nothing motivates the buyer to pay early. Of course, there are restrictions — age, current income, status in the country, and so on. Loans are not handed out right and left, but the most important thing is the notorious credit history.
Interest-free loans encourage purchase. The dealer wins because it gets a buyer, the bank wins because it receives a commission from the dealer for the loan. The buyer receives a car and a loan without extortionate interest.
Mortgages are built on the same principle. In the chain «developer — bank — buyer» everyone wins. But taking into account the increased risks, the bank still takes interest on the mortgage: from 1 to 3%, depending on the level of your income, the number of dependents, age and other factors.