Not being able to afford an item upfront can be frustrating. Whether you’re buying holiday gifts or need a large purchase for your house, Amazon layaway makes it easier to afford these items without using a credit card or racking up high-interest debt.
It’s much like the layaway programs big box retailers used to have, only this time; you’re buying items online and holding them until you pay in full.
What is Amazon Layaway?
Amazon layaway is a program similar to buy now, pay later programs, except you don’t receive the item until you’ve paid in full. There’s no credit check, and you don’t pay interest. If you change your mind, there are also no cancellation fees.
Amazon layaway differs from buy now pay later programs because you don’t receive the item until you’ve paid it in full. You don’t choose your shipping options or even pay for shipping until you’ve covered the full purchase price.
Here’s how it works.
How Amazon Layaway Works
Choose from the large variety of items eligible for Amazon layaway. You’ll know which items are eligible by the label ‘Reserve with Layaway’ near the product description. Some items may not show layaway because there are multiple sellers. The items must be sold and shipped by Amazon to be eligible for layaway. See a full list of items here.
When you find eligible items, you’ll pay 20% of the item’s price at checkout. This locks in the price, so even if the price increases, your price stays the same. You then make payments bi-weekly over the next eight weeks. So, for example, if you bought a $300 item, you’d pay $60 at checkout and $60 every two weeks to pay the full $300.
After you make your final payment, you choose your shipping method, and the item is delivered to you.
Can you Pay Items off Early?
If you want faster delivery of your items, you can pay them off early rather than waiting eight weeks. There isn’t a penalty for early payment; you can pay as much extra toward the product as you want.
What Happens if you Cancel your Order?
You can cancel your order at any time. If you cancel, Amazon will refund any payments you made toward the purchase. In addition, there aren’t any penalties or interest you’ll pay to cancel the order.
How are Payments Calculated?
Amazon divides the total payment into five payments. You make the first payment at checkout. The remaining four payments are made in equal installments every two weeks for the next eight weeks.
The total excludes shipping and tax. After your final payment, you’ll set up shipping and pay any taxes and shipping fees before the item ships.
What if you Miss a Payment?
If you miss an Amazon layaway payment, there’s no financial penalty. However, you won’t be able to set up any other layaway payments until you bring the payments current.
For example, if you miss your May 1st payment, you cannot make any more layaway purchases until you make the payment. If another due date passes without a payment, Amazon automatically cancels your purchase and refunds any payments you made.
Final Thoughts – Is Amazon Layaway Worth It?
If you don’t have the cash to pay for a large item upfront, Amazon layaway can be a great way to save for it while locking in the price. In addition, you don’t have to worry about the price increasing or the product selling out.
As long as you make your payments on time, you’ll have the item delivered to you in 8 weeks or less, depending on how long it takes to pay the item in full. The largest benefit is you don’t pay interest, and it won’t hurt your credit until a credit card.
Amazon layaway can be a great way to budget for items you need without causing any damage to your credit and putting yourself at risk of going into debt.
