Once a common option for paying for high-value items, layaway is not nearly as widely available as it was in years past. However, select pawn shops, including Central Mega Pawn in Ontario still offers layaway payments. Read on for everything to know about layaway payment options for premium products.
What is Layaway?
Layaway is a type of buying method that involves placing a deposit on an item, so that the seller “lays the item away” so that other buyers cannot purchase it. It is a way of paying for items, that you want, but need a bit of time to pay the balance. It is typically only used for high-value items. Less expensive items may not qualify for the layaway purchase plan.
The concept of “laying away” items for purchase has its origins in the Great Depression when tens of millions of Americans were living in poverty. Layaway was incredibly popular for many decades, until the credit card market burst open in the 1980s. But from 1930-1980, layaway was frequently used to buy holiday gifts, birthday gifts, and big-ticket items ranging from jewelry to power tools, gym equipment, and more.
Layaway at traditional retailers often involved a down payment followed by a final payment. At pawn shops today, even more latitude is granted to the customer when using layaway. Customers may instead put down a deposit and make a series of payments until the item is paid off. Each pawn shop that offers layaway reserves the right to set its own terms of layaway plans.
Benefits of Layaway at a Pawn Shop
Using layaway to finance an item you’d like to purchase from a pawn shop has several benefits.
1. Layaway Does Not Charge Interest
When you agree to buy an item on layaway, you will not be charged any interest. Instead, the terms of the installment plan will be discussed with you, and you’ll leave a deposit (typically a percentage of the cost of the item). You’ll then make regular payments until the remaining balance is paid off. However, you will not be charged interest. The price that you agree to buy the item for is the price you’ll pay.
2. There is No Fee for Layaway
You won’t find hidden fees affixed to your layaway plan. Layaway is simply a flexible purchasing plan that is offered to customers, with no strings attached. Past due payments may be subject to fees, per the contract.
3. Layaway Increases Your Buying Power
When you use layaway to purchase a luxury watch, diamond engagement ring, or other valuable item, you increase your buying power. For example, consider you find a ring at a pawn shop that you’d like to buy as a gift. The ring is $2,500. But you only have $1,000 available to spend on that day.
With layaway, you can put down just a deposit, ensuring the ring won’t be sold to someone else, and pay off the ring over time. Your $1,000 available funds are increased 2.5x in this example, using layaway.
4. You Don’t Need Good Credit to Be Approved for Layaway
Layaway financing for items at a pawn shop can help customers who do not have good credit. The pawn shop will never check your credit before approving you for a layaway plan. You’ll just need a deposit and a valid form of I.D. to purchase items on layaway.
5. Layaway Prevents You from Maxing Out Credit Cards
When you max out your credit cards, your credit score decreases. Plus, you’ll have to pay back the charges, often with very hefty interest. Layaway allows you to avoid maxing out your credit cards, and therefore avoiding the interest on the charges, which can take years to pay off.
Items You Can Purchase on Layaway at a Pawn Shop
Most high-value items for sale at a pawn shop can be purchased on layaway. These may include:
- Engagement rings
- Wedding rings
- Gold and silver jewelry
- Power tools
- Designer Handbags
- Luxury watches
- Musical Instruments
- Much more
Can You Cancel an Item You Have on Layaway at a Pawn Shop?
All pawn shops are slightly different. At Central Mega Pawn you may cancel your items on layaway, and you may receive store credit for payments made. You may be subjected to a cancellation fee. The pawnbroker you work with will explain any penalties, and all options available for cancelling items on layaway.
What happens if I’m late on my layaway payment at the pawn shop?
If you cannot make your layaway payment on time, don’t avoid the pawn shop. Call or stop in and let the broker know that the payment will be late. They may agree to keep the item laid away for you if you make the payment within a certain number of days.
How long do I have to make the layaway payments?
Each pawnshop that offers layaway will have their own terms and conditions for layaway. You may have several to many months to pay off your item. Before you agree to purchase anything on layaway be sure you understand the terms and conditions as set by the pawn shop.
How Much of a Deposit Do I Need to Put Down for a Layaway Purchase at a Pawn Shop?
Pawn shops are typically independently owned and operated, and therefore set their own rules and guidelines for layaway deposits. Some may accept as little as 10% of the purchase price as a deposit. Others may require 30% of the purchase price for a down payment. Ask your local pawnbroker for details.
Layaway Available at Central Mega Pawn in Ontario
Central Mega Pawn in Ontario near Pomona and Upland is proud to offer customer layaway installment payment plans for purchases. As the top-reviewed pawn shop in the Inland Empire, we are here to help you to purchase the items you want with no-interest layaway options. Visit us on S. Central Avenue in Ontario to shop using layaway. If you have any questions about our layaway program, feel free to call us at 909-627-9622. You may also send us a message.