How Much Does Layaway Cost?
Layaway is defined as a means to purchase an item without having to pay for the complete amount. Layaway is convenient since many stores do not charge interest, but can be inconvenient since you will not be given the item until you pay it off. Most of the items on the market are available through layaway, and the prices depend on the item that you decide to buy. The rate for layaway can differ based on the terms of payment you decide to take, as well as other factors depending on the arrangements made with the store. If you place a bigger down payment, the remaining balance will be lower.
How much is it?
- The price for layaway plans depends on the item that you are purchasing. The average price for the down payment is around 20% to 35% of the original price of the item, and the maximum allowable payment can be stretched up to 14 individual payments. For example, the individual payments for items costing $100 to $500 is anywhere between $6 and $30 per month.
- More expensive items with the same rate of payment mentioned above can cost more. For items that cost $600 to $1,000, the rate of payment can average anywhere from $35 to $58 per month.
- There are items that are harder to purchase with either cash or credit card as the price can balloon up to several thousands of dollars. This is true especially for electronics. Anything that costs $1,100 to $2,000 can cost $64 to $115 per month, which is paid at 14 individual payments.
What are the extra costs?
- A layaway plan can be cancelled if the customer desires it. However, there are cancellation fees involved for doing so. Cancellation fees can cost $10 to $25 depending on the store.
- A non-refundable service fee is charged every time a customer takes advantage of the layaway service. The service fee can cost anywhere from $1 to $5 depending on the store and its policies.
What is going to be included?
- The layaway plan will include the taxes as well as the fixed price of the item at the time of purchase no matter what the price difference is after a period of time elapsed.
- Once the items have been purchased in full, they will be released. The layaway can be paid off at any time throughout the duration.
- Keep in mind that some items won’t be eligible for layaway. Each store will have their own store policy, so be sure to check with their policy to see what’s going to be eligible for it.
How can I save money?
- Pay a larger down payment to lessen a great deal of the balance. Choose a shorter term of payments as longer terms can present higher interest rates.
- Check with some stores as many have special layaway promotions. Keep in mind that some stores won’t offer layaway plans, so other finance methods may be necessary. These stores can commonly have specials during holiday seasons such as Christmas, etc.