As a savvy shopper and retail industry expert, one of the questions I‘m often asked is, "Does Lowe‘s have layaway?" With the rising costs of home goods and appliances, many consumers are looking for ways to break up the expense of large purchases. Layaway used to be a go-to solution, but in recent years, it‘s become increasingly less common.
In this comprehensive guide, I‘ll cover everything you need to know about layaway at Lowe‘s, including:
- The history of layaway and its decline among major retailers
- Why Lowe‘s and other retailers have phased out layaway
- What financing options Lowe‘s offers instead of layaway
- How to decide which Lowe‘s payment plan is right for you
- Strategies for staying on budget when using store financing
By the end of this article, you‘ll be armed with all the knowledge you need to make informed decisions about affording your next major Lowe‘s purchase. Let‘s dive in!
The Rise and Fall of Layaway in Retail
Layaway first rose to prominence during the Great Depression in the 1930s. It allowed cash-strapped consumers to reserve items and pay for them over time without taking on debt. Layaway reached its peak in the 1980s, with many major department stores and retailers offering the service.
However, with the widespread adoption of credit cards in the 90s and 2000s, layaway began to fall out of fashion. Consumers increasingly opted for the instant gratification of taking items home immediately and dealing with the payments later. Retailers also found layaway programs costly to administer. As a result, many phased out the service, especially after the 2008 recession.
According to a 2019 study by CreditCards.com, only 9% of retailers still offer traditional layaway. Most that do are discount stores or retailers that cater to low-income consumers. The major retailers that continue to provide layaway include:
- Walmart (seasonal/holiday layaway only)
- Kmart
- Sears
- Burlington Coat Factory
- Marshall‘s
- TJ Maxx
Why Doesn‘t Lowe‘s Offer Layaway?
So, does Lowe‘s have layaway? The short answer is no. Lowe‘s used to provide a layaway program, but it was discontinued several years ago. The company found that the costs of administering layaway outweighed the benefits, especially as consumers gravitated toward other financing options.
Lowe‘s isn‘t alone in this trend. Its main competitor, The Home Depot, also doesn‘t have layaway. Nor do most other major retailers in the home improvement space, like Menards or Ace Hardware.
Instead of layaway, these retailers have shifted toward promoting store credit cards and other financing alternatives that allow them to make more sales while passing credit risk off to a third party.
Lowe‘s Financing Options: Alternatives to Layaway
While you can‘t do layaway at Lowe‘s, you do have a couple options for financing your purchases and paying over time. Let‘s take a closer look at each.
1. Lowe‘s Advantage Credit Card
The primary financing option Lowe‘s offers is its store credit card, known as the Lowe‘s Advantage Card. This card, issued in partnership with Synchrony Bank, allows you to pay off purchases of $299 or more over a period of 6 months with no interest, as long as you make minimum payments and pay the full balance by the end of the term.
Key features of the Lowe‘s Advantage Card include:
- No annual fee
- 5% off your eligible purchases, or 6 months special financing on purchases of $299+
- 84 fixed monthly payments at 7.99% APR for select purchases of $2000 or more
- Standard APR of 26.99%
To qualify for the Lowe‘s Advantage Card, you‘ll need a credit score of around 620 or higher, which is considered "fair" credit. If approved, you‘ll be able to use the card for purchases at Lowe‘s stores and on Lowes.com.
One thing to note about the special financing offer is that it uses deferred interest. That means if you don‘t pay off the full balance by the end of the 6 months, you‘ll be charged interest going back to the original purchase date. So it‘s crucial to have a plan and budget to ensure you can pay on time and in full.
2. Progressive Leasing (Lease-to-Own)
If you don‘t qualify for the Lowe‘s Advantage Card, or if you need a longer repayment term, Lowe‘s also offers a lease-to-own program through Progressive Leasing. This allows you to take home the merchandise immediately and make monthly lease payments until you own it outright.
Some key things to know about Progressive Leasing at Lowe‘s:
- It‘s available for select merchandise, including appliances, furniture, and electronics
- The standard lease term is 12 months
- You can buy out your lease at any time by paying the remaining balance
- Progressive Leasing does not require a credit check; all you need is a valid ID and source of income
- Items leased through Progressive are more expensive than if purchased outright due to lease fees
Here‘s an example of how the costs break down. Let‘s say you want to lease a refrigerator that retails for $1,000. With Progressive Leasing, you would agree to make 12 monthly payments of around $125, for a total cost of $1,500 (not including taxes and fees). In contrast, if you bought the fridge outright, you would pay only the $1,000 retail price plus taxes.
So while lease-to-own can be a helpful option if you don‘t have the upfront cash or credit, it‘s important to understand the true costs and read the fine print before signing a lease agreement.
Which Lowe‘s Financing Option Is Right for You?
So now that you know your financing choices at Lowe‘s, how do you decide which one to use? The answer depends on your specific situation and needs. Here are some general guidelines:
-
If you have good credit (620+) and can pay off the balance in 6 months, the Lowe‘s Advantage Card is usually your best bet. You‘ll get 6 months interest-free financing and 5% off your purchase.
-
If you need more than 6 months to pay, consider the Lowe‘s Advantage Card‘s 84 fixed payment offer for purchases of $2000 or more at 7.99% APR. Just be sure the monthly payment fits your budget.
-
If you don‘t have good credit or a long credit history, you‘ll likely need to use the Progressive Leasing option. Make sure you factor the lease fees into the total cost and have a plan to make your payments until the item is paid off.
The most important thing is to avoid taking on a payment you can‘t afford. Before making a large purchase, review your budget and projected income to ensure you have room for the new monthly expense. Don‘t let the promise of easy financing lure you into overextending yourself financially.
Other Ways to Save and Pay at Lowe‘s
Beyond the formal financing options, there are a few other strategies savvy shoppers can use to save money and spread out costs at Lowe‘s:
-
Use coupons and price match: Lowe‘s accepts manufacturer‘s coupons and will price match competitors like Home Depot. Always do your research to ensure you‘re getting the lowest price.
-
Buy discounted gift cards: Sites like Raise.com often have Lowe‘s gift cards for sale below face value, so you can save on your purchase without a credit check.
-
Take advantage of sales and seasonal promotions: Lowe‘s regularly runs sales around holidays and special events. Plan ahead and wait to make large purchases until these times if possible.
-
Negotiate prices on floor models and open box items: If you don‘t mind a slightly used appliance, you may be able to score a deal by negotiating the price on floor models or returned items.
-
Join Lowe‘s email list and follow them on social media to stay informed of deals and promotions. You can also sometimes get a coupon just for signing up.
Key Takeaways
To recap, here are the key points to remember about layaway and financing at Lowe‘s:
- Lowe‘s does not currently offer layaway in-store or online
- Lowe‘s financing options include the Lowe‘s Advantage Credit Card (for those with fair credit) and Progressive Leasing (lease-to-own program with no credit check)
- The Lowe‘s credit card offers 6 months special financing on purchases of $299 or more; Progressive Leasing allows 12 months to pay
- Always understand the true costs and have a budget in mind before using store financing to make a purchase
- Look for other ways to save at Lowe‘s like coupons, sales, price matching, and discounted gift cards
Conclusion
Layaway may no longer be an option at Lowe‘s and many other major retailers, but that doesn‘t mean you‘re out of luck when it comes to affording large purchases. By understanding your financing options and being a strategic shopper, you can find a way to get the home goods and appliances you need without breaking the bank.
Whether you opt for the Lowe‘s Advantage Card, Progressive Leasing, or another payment method, the key is to stay within your budget and have a plan. Don‘t let the appeal of easy monthly payments tempt you into spending more than you can truly afford.
By following the tips and guidance in this article, you can navigate the post-layaway retail landscape with confidence and come out ahead. Here‘s to happy and responsible shopping at Lowe‘s and beyond!
