A purchasing method that allows a consumer to put a product on hold by placing a deposit on the item. Layaway allows the customer to make smaller payments on the product until the purchase price is paid in full, rather than paying for the item with credit and adding interest to the cost. A layaway plan ensures that the chosen merchandise will be in stock and ready for pick-up when the final payment is made.

This method works for consumers who have a limited amount of disposable income and are unable to make larger purchases all at once. It also works to retailers' advantage by allowing them to offer products to lower-income customers. Layaway can also be used as a savings plan; because the customer has already made a commitment to purchase the product on layaway, he or she can not give in to temptation to spend the money elsewhere.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Layaway — Layaway, also referred to as lay by in Australia and New Zealand, is a way to purchase an item without paying the entire cost at once. However, rather than taking the item home and then repaying the debt on a regular schedule, as in most… …   Wikipedia

  • layaway — lay‧a‧way [ˈleɪəweɪ] noun [uncountable] COMMERCE a method of buying goods in which the buyer makes a first payment that is a percentage of the price and the goods are kept by the seller until the full price is paid: • Jerry bought some furniture… …   Financial and business terms

  • layaway — An agreement between a retail seller and a consumer that provides that the seller will retain designated consumer goods for sale to the consumer at a specified price on a future date, if the consumer deposits with the seller an agreed upon sum of …   Law dictionary

  • layaway — [lā′ə wā΄] n. 1. a method of buying in which a deposit is made on something that is then set aside for delivery only after it is paid for in full, as by monthly payments 2. the state of an item thus set aside: chiefly in in layaway …   English World dictionary

  • layaway — 1961, as a system of payments for merchandise, from LAY (Cf. lay) (v.) + AWAY (Cf. away). Earlier in the same sense was Australian lay by (1930) …   Etymology dictionary

  • layaway — noun (U) AmE a method of buying goods in which the goods are kept by the seller for a small amount of money until the full price is paid: I ve put the dress on layaway. layaway adjective: a layaway plan …   Longman dictionary of contemporary English

  • layaway — /lay euh way /, n. 1. See layaway plan. 2. an article or item purchased through a layaway plan. [1880 85; n. use of v. phrase lay away] * * * …   Universalium

  • layaway — lay|a|way [ˈleıəweı] n [U] AmE a method of buying goods in which you give the seller of the goods a small amount of money to keep the goods until you can pay the full price ▪ I put the dress on layaway. >layaway adj …   Dictionary of contemporary English

  • layaway — lay|a|way [ leıə,weı ] noun uncount AMERICAN a method of buying goods from a store by which a customer pays a small amount of money so that the store will keep the goods for them until they pay the rest: put something on layaway: Will you put… …   Usage of the words and phrases in modern English

  • layaway — n. making a purchase with payments by installments; item bought using a layaway plan …   English contemporary dictionary

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