When it comes to purchasing big-ticket items like electronics, appliances, or furniture, many consumers rely on financing options to make their dreams a reality. One classic method is layaway, which allows customers to reserve an item and pay for it in installments over time. But in the age of credit cards and instant gratification, does this old-school approach still have a place in modern retail? And more specifically, does tech giant Best Buy offer layaway as a payment option?
As a retail and consumer expert with over a decade of experience analyzing market trends and buyer behavior, I‘ve seen the landscape of consumer financing change dramatically in recent years. From the rise of e-commerce and mobile payments to the proliferation of loyalty programs and subscription services, shoppers today have more choices than ever when it comes to how they pay for their purchases. But while some traditional financing methods have fallen by the wayside, others have evolved and adapted to stay relevant in the digital age.
In this comprehensive guide, I‘ll take a deep dive into the world of layaway and explore its history, benefits, and drawbacks compared to other financing options. I‘ll also examine Best Buy‘s current policies and alternatives for budget-conscious shoppers looking to make a major purchase. Whether you‘re a tech enthusiast, a bargain hunter, or simply curious about your payment options, this post will give you the knowledge and tools you need to make an informed decision and get the best value for your money.
The Rise and Fall of Layaway in Retail
Layaway has a long and storied history in the retail industry, dating back to the Great Depression of the 1930s. At a time when credit was scarce and most Americans were struggling to make ends meet, retailers began offering layaway as a way for customers to secure big-ticket items and pay for them over time. The concept was simple: the store would hold the item for the customer and collect regular payments until the balance was paid in full, at which point the customer could take the item home.
Layaway became especially popular during the holiday season, when families would use it to purchase gifts for their loved ones without going into debt. Retailers like Walmart, Kmart, and Sears were among the biggest proponents of layaway, promoting it heavily in their advertising and offering special deals and incentives for customers who used it.
However, as credit cards became more widely available and socially acceptable in the 1980s and 1990s, layaway began to lose its luster. Many consumers preferred the convenience and flexibility of paying with plastic, even if it meant incurring interest charges or annual fees. Retailers also started to see layaway as a burden, with high administrative costs and low profit margins compared to other payment methods.
In the early 2000s, several major retailers began phasing out or scaling back their layaway programs. Walmart, for example, discontinued layaway in 2006, citing declining usage and high costs. Other stores followed suit, either eliminating layaway altogether or restricting it to certain categories or time periods.
Fast forward to today, and layaway is a shadow of its former self. According to a 2019 survey by CreditCards.com, only 10% of retailers offer year-round layaway, while another 10% offer it seasonally. Of those that do offer layaway, most have strict terms and conditions, such as minimum purchase amounts, service fees, and cancellation penalties.
Layaway vs. Other Financing Options: Pros and Cons
So how does layaway stack up against other consumer financing options in the modern retail landscape? Let‘s take a closer look at the pros and cons of each method:
Layaway
Pros:
- Allows customers to reserve items and pay over time
- No credit check or interest charges
- Can help with budgeting and avoiding debt
- May have lower fees than other financing options
Cons:
- Limited availability and selection
- Requires regular payments and trips to the store
- May have service fees, cancellation fees, or restocking fees
- Ties up funds that could be used elsewhere
- No immediate access to the purchased item
Credit Cards
Pros:
- Widely accepted and convenient to use
- Allows immediate access to purchases
- Can earn rewards, cashback, or other perks
- May offer fraud protection and dispute resolution
- Can help build credit history with responsible use
Cons:
- Requires credit approval and may have high interest rates
- Easy to overspend and accumulate debt
- May have annual fees, balance transfer fees, or cash advance fees
- Minimum payments may be low but prolong debt repayment
Installment Loans
Pros:
- Fixed payments over a set term (usually 6-60 months)
- Lower interest rates than credit cards
- Can be used for larger purchases like appliances or furniture
- May help build credit with on-time payments
Cons:
- Requires credit check and approval
- May have origination fees or prepayment penalties
- Commits to long-term debt with interest charges
- Less flexibility than other options (e.g. can‘t return or exchange items)
Lease-to-Own
Pros:
- No credit check or long-term commitment
- Flexible payment options and terms
- Can return or exchange items during lease period
- May have lower upfront costs than outright purchase
Cons:
- High long-term costs due to fees and interest (can be 2-3x retail price)
- No ownership of the item until lease is paid in full
- Strict usage, maintenance, and insurance requirements
- Limited selection and inventory compared to traditional retailers
Buy Now, Pay Later (BNPL)
Pros:
- Instant approval and checkout with no credit check
- Spreads payments over a few weeks or months
- Usually no interest or fees if paid on time
- Can be used for online or in-store purchases
- May integrate with existing store accounts or loyalty programs
Cons:
- Late or missed payments can incur fees and damage credit
- Interest may kick in after the promotional period
- Encourages impulse buying and overspending
- Terms and conditions vary widely by provider
- May not be available for all items or purchase amounts
Best Buy Financing Alternatives
Now that we‘ve covered the basics of consumer financing, let‘s circle back to our original question: does Best Buy offer layaway? The short answer is no, at least not in the traditional sense.
Best Buy did offer layaway for a brief period in the early 2000s, but discontinued the program in 2006 due to low usage and high costs. Since then, the company has focused on other financing options that are more in line with the needs and preferences of modern shoppers.
Here are some of the current financing alternatives available at Best Buy:
My Best Buy Credit Card
Best Buy‘s store credit card is issued by Citibank and offers a range of benefits for frequent shoppers, including:
- 5% back in rewards on Best Buy purchases (6% for Elite Plus members)
- Flexible financing options with reduced or deferred interest for 6-24 months (depending on purchase amount and category)
- Free shipping on all orders with no minimum purchase
- Early access to sales and exclusive offers
- No annual fee
To qualify for the My Best Buy Credit Card, you‘ll need to have a fair to good credit score (660+) and meet certain income and debt requirements. If approved, you‘ll receive a credit limit based on your creditworthiness and can start using the card immediately for online or in-store purchases.
However, it‘s important to note that the My Best Buy Credit Card does have some potential drawbacks, such as high APRs (up to 29.99%) and deferred interest financing that can result in significant charges if not paid in full by the end of the promotional period. As with any credit card, it‘s crucial to use it responsibly and pay your balance on time to avoid costly fees and damage to your credit score.
Progressive Leasing
For customers who don‘t qualify for a traditional credit card or prefer a lease-to-own model, Best Buy partners with Progressive Leasing to offer a no-credit-needed financing option. With Progressive Leasing, you can take home your Best Buy purchase after making an initial payment of just $49 and then pay off the remaining balance over 12 months.
The application process is quick and easy, with instant approval decisions and no credit check required. You‘ll just need to provide some basic information, including your name, address, income, and bank account details. Progressive will then set up an automatic payment plan based on your lease agreement and purchase amount.
While Progressive Leasing can be a good option for those with limited credit or cash on hand, it does come with some significant costs and risks. The total amount you‘ll pay over the life of the lease can be much higher than the original purchase price, with an effective APR of 50-200% depending on your payment schedule and state of residence. You‘ll also be subject to strict usage and maintenance requirements, and may face additional fees or penalties for late payments, early buyouts, or lease violations.
Best Buy Pay Monthly with Citizens Bank
For larger purchases over $299, Best Buy offers a fixed monthly payment plan through Citizens Bank. This installment loan option allows you to spread the cost of your purchase over 24, 36, or 48 months with a fixed APR and no prepayment penalties.
To apply for Best Buy Pay Monthly, you‘ll need to fill out a short online application and provide some basic personal and financial information. Citizens Bank will then perform a hard credit check and assess your creditworthiness based on factors like your income, debt-to-income ratio, and credit history. If approved, you‘ll receive a loan agreement with your personalized terms and monthly payment amount.
Best Buy Pay Monthly can be a good choice for customers who want the stability and predictability of fixed payments over a longer term. However, it‘s important to carefully review the loan terms and calculate the total cost of borrowing before signing up. Depending on your credit profile and loan amount, you may be offered APRs ranging from 0% (for a limited time) to 29.99%, which can significantly impact your overall costs.
Strategies for Savvy Best Buy Shoppers
Regardless of which financing option you choose (if any), there are several strategies you can use to get the best deals and maximize your savings at Best Buy:
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Shop sales and clearance events: Best Buy offers frequent sales and promotions throughout the year, especially around holidays like Black Friday, Cyber Monday, and Memorial Day. Keep an eye out for doorbuster deals, daily deals, and clearance items that can save you up to 50% or more off regular prices.
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Join the My Best Buy loyalty program: Signing up for a free My Best Buy account gives you access to exclusive offers, early access to sales, and rewards points on every purchase. You can earn 0.5 points per dollar spent (1 point per dollar for Elite members) and redeem them for reward certificates that can be used like cash on future purchases.
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Use price matching and competitors‘ coupons: Best Buy will match the prices of identical items from select online and local competitors, including Amazon, Walmart, Target, and more. You can also use competitors‘ coupons and promo codes at Best Buy, as long as they meet certain criteria (e.g. same item, in stock, not clearance).
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Bundle and save: When shopping for multiple items at once (e.g. a TV and soundbar), look for bundle deals that offer discounts or freebies when purchased together. You can also create your own bundles by adding complementary accessories or services (e.g. HDMI cables, streaming devices, Geek Squad protection) to your cart and using applicable coupons or promos.
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Negotiate and ask for discounts: While haggling may not be as common in big-box stores like Best Buy, there‘s no harm in asking for a better price or deal, especially on open-box items, floor models, or end-of-life products. You can also try negotiating for free delivery, installation, or extended warranties, or see if you qualify for any special discounts (e.g. student, military, first responder).
The Bottom Line
In summary, while Best Buy does not currently offer traditional layaway, it does provide several financing alternatives for customers looking to make a major purchase. Whether you choose to use a Best Buy credit card, lease-to-own plan, or installment loan will depend on your individual needs, preferences, and financial situation.
As a savvy shopper, it‘s important to carefully consider the pros and cons of each option and read the fine print before committing to any long-term debt or payment plan. By doing your research, comparing prices and deals, and using smart shopping strategies, you can get the best value for your money and enjoy your Best Buy purchases for years to come.
At the end of the day, remember that financing is just one tool in your shopping toolkit. The most important thing is to stay within your means, prioritize your needs and goals, and make informed decisions that align with your values and lifestyle. Whether you choose to save up and pay in full, spread out your payments over time, or wait for a better deal, the key is to be proactive, persistent, and purposeful in your approach.
I hope this guide has been helpful in demystifying the world of layaway and consumer financing, and empowering you to make the best choices for your unique situation. If you have any additional questions, comments, or experiences to share, I‘d love to hear from you in the comments below. Happy shopping!
