How to Purchase Furniture on Layaway

Many furniture retailers offer customers the ease and convenience of making major purchases on a layaway or consignment program. If you don't want to absorb the financial hit of a new living room set or flat-screen television all at once, a layaway plan is an excellent way to pay down your purchase gradually without accruing interest by using your credit card to buy it.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Down payment
• Income to make (monthly) layaway payments

Get New Furniture on a Layaway Program

1. Let your fingers do the walking--call local furniture retailers and find out which ones offer layaway programs. Many will, since furniture is relatively expensive and most people have trouble buying it outright without some sort of financing.

2. Explore online options. The Internet can be an excellent way to find bargains on new and used furniture, since specialty online retailers generally have lower overhead costs.

3. Ask the furniture store if it has other financing options in place. In the world of no-money-down, zero-interest furniture financing, you may have better options available to you than a layaway plan. Many layaway plans include additional charges levied by the seller.

4. Obtain a copy of the furniture store's layaway agreement. Especially when buying used furniture, you're going to want to make sure the store has provisions to enter a written, agreed-upon description of the condition of the furniture you're buying. This protects you from paying for an item that suffers additional wear, while it remains in storage as you pay it off.

5. Agree upon a price, terms and conditions and a payment schedule. Get everything in writing. Review the agreement to make sure all items appear as discussed.

6. Ask if delivery or installation charges are included in the purchase price of the furniture you're buying.

7. Make your down payment. Most furniture stores will require you to put down 10 percent or less on a layaway purchase. However, the more you put down, the faster you'll pay the purchase off--which will help minimize your risks.

8. Avoid missing payments, or making late ones. You may face penalties or additional charges.

9. Get the store to deliver your new furniture item once you've finished paying for it.

Tips & Warnings

• If it's not financially necessary for you to buy on layaway, don't. Many furniture stores build additional charges into layaway programs, which will drive up the end cost of your purchase.
• Purchasing anything on layaway carries certain risks to the buyer. For example, if the furniture store closes before you've paid off your purchase, you could lose all the money you've paid toward your new furniture. Check to make sure you deal with reputable merchants when making major purchases on a layaway program by asking around town and checking with the Better Business Bureau.