Lay-by is a popular way of shopping many decades ago and it’s slowly making a comeback these days especially with the tight financial situation most people are in. buying by lay-by is convenient but there are plenty of things that you need to understand and remember to avoid hassle and prevent spending more expected. If you’re interested in this mode of shopping, here are the important things you need to know first.
What is Lay-By?
A lay-by is an agreement in which you have to pay for your chosen item in several instalments before you could get it. You wouldn’t be able to bring the product home unless you are done paying for it in full. These products could range from appliances, furniture, gadgets, and many more. If there is something that you want yet you don’t have enough cash to pay it in full, you could still own it through time with lay-by. This agreement is usually offered by big stores and even small retail shops to gain more customers.
Other Factors to Consider
Although lay-by seems like a very convenient way to shop or budget, there are some things that you should always keep in mind when you’ve signed a lay-by agreement. First is the service fee. When you shop by lay-by, the store will charge you with an additional service fee which is about $2 to $10 depending on their policies. However, it all depends on the shop on how much they charge for their customers.
Another one is the cancellation fee. Once you’ve signed a lay-by agreement, it would be wise to continue it until you’ve paid it in full rather than cancelling it if you changed your mind. It would cost you more when you cancel a lay-by, plus, the store could even keep the service fee as well as the deposit if you choose to cancel. Before signing a lay-by, see to it that you are 100% sure that you want to get that product.
Lastly, when the company goes into receivership before you have paid the lay-by in full, you’ll be included in the list of unsecured creditors. This means that you are the last in line in terms of getting back outstanding assets. Be sure to choose a store wisely before doing a layby. See to it that it doesn’t have legal issues especially regarding unsecured debts.
Lay-by and Interest-Free Purchase
Although both of them allows a customer to pay for an item in spread out payments, you could already take the product home instantly even if it’s still not fully paid with an interest-free purchase. On the contrary, lay-by is a lot more convenient to process than an interest-free purchase since you don’t need an application to get it.
Lay-by is a great way to shop the things that you would want to have. However, you need choose wisely and make good decisions before signing up on a lay-by agreement to avoid hassle and extra costs later on.