layaway

play
noun lay·away \ ˈlā-ə-ˌwā \
Updated on: 26 Jul 2017

Definition of layaway

:a purchasing agreement by which a retailer agrees to hold merchandise secured by a deposit until the price is paid in full by the customer

Examples of layaway in a Sentence

  1. We bought the table and chairs on layaway, so we won't have them until December.

  2. The store offers a layaway plan for large purchases.

Recent Examples of layaway from the Web

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'layaway.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

First Known Use of layaway

1944


lay away

verb

Definition of lay away

transitive verb
:to put aside for future use or delivery

Examples of lay away in a Sentence

  1. the weather forecast warned of a severe storm, so we laid away a generous supply of bottled water and canned food just in case

First Known Use of lay away

circa 1928


Financial Definition of LAYAWAY

layaway

What It Is

Layaway is an arrangement in which a retailer agrees to reserves a piece of merchandise for a customer who cannot immediately pay for it in full.

How It Works

Layaway is a delayed payment method. A customer deposits a fraction of an item's price, and then the retailer stores the item for a specific period of time. The customer must pay for the item within an agreed time frame or else the retailer will put it back on the shelves for other customers.

For example, let's assume Bob wants to buy a $50 food processor Big Store, but does not have enough money. Bob decides to use Big Store's layaway plan, instead. He deposits $10 with Big Store and they agree to hold the item for 10 days. Bob has 10 days to pay the remaining $40, and if he doesn't, Big Store will put the food processor back on the sales floor.

Why It Matters

Layaway plans are good options for customers who don't have access to credit or who don't want to use credit. After falling out of vogue for many years, some stores are bringing layaway plans back as a way to attract cash-strapped consumers.


LAYAWAY Defined for English Language Learners

layaway

play
noun

Definition of layaway for English Language Learners

  • : a way of buying something in which you do not receive the thing you are buying until you have paid the full price by making small payments over a period of time


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