what's the purpose of layaway?

[DrPizza]

Main reason: because on layaway, people don't rack up a shitload in financing charges that they do on credit cards. Of course, no one on ATOT is familiar with that concept, because they're going to pretend "oh my gosh! I must be better than everyone else, because everyone on ATOT pays their credit card off in full every month and only has a 0.02% interest rate. (Unlike 80% of the people in the US who do NOT pay off their credit card every month.)

Personally, I haven't used layaway in years; and not for credit card reasons. (Day to day, I use my debit card; credit cards are for emergency only.) But for me, the reason we used layaway was that we did our Christmas shopping early and put all the kids toys on layaway - that way, they were stored somewhere, we got what we wanted, and if it went on sale between the time we purchased it and when we paid off the layaway, we got the sale price. Then, a week before Christmas, we picked them up and dropped them off at a relative's house (we weren't going to impose by storing them there for a month or longer.)

 

[blackangst1]

I used layaway to lock in a sale price but wasnt ready to take delivery. My house wasnt ready to close until middle of August, and the fridge I wanted was 60% off at Sears in June. I put it on layaway to lock the sale price, and when I was ready to take delivery I paid it off.

Not everyone has credit cards, nor is everyone diciplined to save. Layaway solves both those problems. And if you think this only applies to poor people, youre severely mistaken. In my former career I sat down with families making in excess of $150k/year and lived paycheck to paycheck with less than $500 in savings.

 

[sleep]

poor people here... i'm not rich and have the money you have.

but i have never used layaway since 2002 (i bought my first camcorder).

 

[Patranus]

Was probably more useful when there wasn't this quantity of mass produced crap.

 

[Bignate603]

I used layaway to lock in a sale price but wasnt ready to take delivery. My house wasnt ready to close until middle of August, and the fridge I wanted was 60% off at Sears in June. I put it on layaway to lock the sale price, and when I was ready to take delivery I paid it off.

That's a really good reason that I hadn't thought of.

 

[Raduque]

So you live entirely paycheck to paycheck with no savings at all? What about emergencies? I have situations pop up several times a year where I need several hundred dollars right now.

I guess I'm just lucky, but I have never had a "several hundred dollar" emergency - I think the most expensive "emergency" I've had in recent memory was when some weird relay block blew up on my old truck and I had to buy a new one fro $80.

 

[Doppel]

I made a thread a couple weeks ago about it: http://forums.anandtech.com/showthread.php?t=2199359&highlight=layaway

The "hiding gifts from kids" seemed good when I first heard it but seriously, you can't hide the stuff somewhere else? Put it in a large tupperware and mark the box in ways that if your kids open it you WILL know and promise to them it will go back to the store? Or put at a neighbor's house?

Seriously I think most people do layaway because they know they have no savings ability and this "forces" them to buy the item they need.

 

[Paladin3]

In other ATOT news, what's the purpose of microwave meals? Who needs them when you can just eat at the country club on your personal chef's day off?

 

[Sixguns]

I dont understand the hate on layaway. If that is how some people are able to get items who cares really. I like that they are labeled "poor" because they use it. Why use a credit card and pay intrest when you can use it and pay over time for the actual price.

 

[manly]

In other ATOT news, what's the purpose of microwave meals? Who needs them when you can just eat at the country club on your personal chef's day off?

:thumbsup:

 

[sleep]

I dont understand the hate on layaway. If that is how some people are able to get items who cares really. I like that they are labeled "poor" because they use it. Why use a credit card and pay intrest when you can use it and pay over time for the actual price.

layaway vs credit card....hmm

 

[nageov3t]

In other ATOT news, what's the purpose of microwave meals? Who needs them when you can just eat at the country club on your personal chef's day off?

so, it layaway like the Subway of the retail world?

 

[GagHalfrunt]

Some people are just too impulsive to save. They can make payment on something, but if they have money laying around, then they'll spend it instead of saving it.

Exactly. Layaway is for the monumentally stupid.

 

[dmcowen674]

what's the purpose of layaway?

I don't get it.

if you want to buy something but can't afford it outright, wouldn't one either:

-put it on a credit card and pay the card off over time
-apply for store credit (ie: 12 months no-interest offers)
-save money until you can afford it outright, then go back to the store and buy it

is there something obvious that I'm missing here? I don't get what the purpose of putting something on layaway is.

Holy crap, you said it "I don't get it."

You are obviously unaffected by the economic crash many Americans are experiencing that will most like be permanent.

Did you ever have a history class?

 

[jhu]

In other ATOT news, what's the purpose of microwave meals? Who needs them when you can just eat at the country club on your personal chef's day off?

Oh poor people... That's what a backup personal chef is for.

 

[OverVolt]

@OP title:

To enslave the poor.

 

[nageov3t]

Holy crap, you said it "I don't get it."

You are obviously unaffected by the economic crash many Americans are experiencing that will most like be permanent.

Did you ever have a history class?

why is it easier for a poor person to make payments on a debt versus just saving up money and then buying the item when they have enough?

re: the thread at large, the sale factor seems like a good argument. that's not something I had thought of, and it makes sense if you can't qualify for like no-interest/no-payments credit (or your not making a big enough purchase to warrant it)

 

[Red Squirrel]

Wow did not realize that even still existed. Think I'm going to go to Consumers Distributing and put something on layaway just because I can.

 

[Leros]

I guess I'm just lucky, but I have never had a "several hundred dollar" emergency - I think the most expensive "emergency" I've had in recent memory was when some weird relay block blew up on my old truck and I had to buy a new one fro $80.

I don't know how you do it. I wouldn't feel comfortable unless I had at least $5000 saved up for emergencies. I wouldn't really feel comfortable unless I had enough money to live off for at least 6 months in the event that I lose my job.

 

[zinfamous]

so, for someone with a high-income and good credit, what's the purpose of layaway?

...it's still cheaper than a credit card.

compared to same item, same store, putting that purchase on a cc vs credit card and paying off the same amount.

layaway = cheaper.

The only difference, of course--is that you own now or own later. This can be a huge difference for some people, of course.

 

[zinfamous]

why is it easier for a poor person to make payments on a debt versus just saving up money and then buying the item when they have enough?

I still don't think you're listening:

THE ITEM MAY NOT BE THERE.

Layaway is great for very popular items at peak season. you save up for those two months? "Oh sorry! we done sold out! good luck finding that anywhere!"

Also, and correct me if I'm wrong, you can lock up items on a sale or promo price that may not exist a month down the line.

 

[zinfamous]

the funny thing is--the truly wealthy out there probably use layaway, or have used it many times in the past.

They look at pretender ballers like those that post here and laugh at your massive ignorance.

Never let some bullshit stereotype influence a good financial decision.


Many of you assume poor people make bad decisions, and thus they have no money. In fact, they actually know how to save money in many cases...b/c they have no money. You look at their decisions improperly, because you are a sad idiot.











(full disclosure: I've never used layaway b/c that's what poor people do)

 

[LegendKiller]

so, for someone with a high-income and good credit, what's the purpose of layaway?

It can be good for middle-class people who don't want to use credit, want to make sure the toys are in stock, to make sure that the prices are good, to make sure they have the time, to hide things...etc. There are a ton of reasons to use layaway and I don't see any reason against it. Before credit was cheaper and/or more widely accepted, it was the preferred method.

Shit, I remember putting Legend of Zelda on layaway at Pamida. Every other week I'd go in and put my $10 allowance down. Taught me a lot, especially on how to save my money. It's easier to do it when you're putting it down on something and working towards a goal.

The elitist attitude some people have about it is pretty disgusting. Not everybody is such a baller and so superior intellectually and psychologically as the wealthy, massively intelligent, and utterly perfect people on this board.

 

[zinfamous]

It can be good for middle-class people who don't want to use credit, want to make sure the toys are in stock, to make sure that the prices are good, to make sure they have the time, to hide things...etc. There are a ton of reasons to use layaway and I don't see any reason against it. Before credit was cheaper and/or more widely accepted, it was the preferred method.

Shit, I remember putting Legend of Zelda on layaway at Pamida. Every other week I'd go in and put my $10 allowance down. Taught me a lot, especially on how to save my money. It's easier to do it when you're putting it down on something and working towards a goal.

The elitist attitude some people have about it is pretty disgusting. Not everybody is such a baller and so superior intellectually and psychologically as the wealthy, massively intelligent, and utterly perfect people on this board.

You sir, are indeed a true legend.


Hell, you need a new title.

 

[brianmanahan]

I love how people portray it as something only for "poor" people. Ohh, I forgot, everybody on ATF makes 200k+/yr.

incorrect. everyone knows it is 250$k per annum