Categories: Business & Finance

Merits and Demerits Of Lay-by Purchase Process

October 29, 2015

In any new business venture or transaction that you want to get into, it is highly advisable that you understand the merits and demerits before fully purging into it. This always ensures that the deals you make are always worth your time and money.

One of the benefits of living in modern days is that it’s now possible to choose whatever you want or need from a large group. This gives us different choices and a chance to choose the exact product or service that we were looking for. Similarly, everything that has merits also has some demerits. The following are the merits and demerits of using lay-by sales.

When using lay-by sales, unlike hire purchase, there are no interest fees inclusive. No amount of cash is added to the initial price of an item as interest.This means that despite the installments that you are required to pay every other week or month; there is no other amount of cash that you owe the retailer. This makes shopping on lay-by much more convenient since you pay a certain amount of money in divisions of several installments .These installment periods are agreed upon between you and the retailer.

Also it is advantageous to shop using the lay-by sales method since you get to find that the products price can be paid off by depositing small amounts of cash until you have paid off the total amount. The payment period is concluded after a negotiation between the Lay-by store and the prospective client. This period should be clearly stated on the lay-by agreement to avoid misunderstandings later along the payment process.

A person can put a security fee or deposit down on a certain item, which is then reserved for them in store until such a time that the bill for the item has been settled in full. This means that you have put down a deposit, then no one can buy the product you have on lay-by.

It also gives you immunity on price changes. Some items tend to change price according to the demand or season. When using lay-by, the price that you get tagged on the item you want to buy remains as that regardless of increase of demand or price on item. For instance, when nearing winter, warm clothing has a tendency of price hiking due to hiked demand.

On the other hand,lay-by sales gets to be somewhat tricky since you may not be able to pay off the product you have put on lay-by. At times the payment process may become a burden for you rendering it impossible for you to make the rest of the payment on time. In such a case you are allowed to make a termination on the lay-by agreement.

Items bought on lay-by are those which the consumer is in no haste to have or use them.This is because goods bought through lay-by usually take some time before they get to you. You spend money but you do not get to enjoy it till you are done with the payment of the stated installments.

The advantages and disadvantages that come along with Lay-by on some items that you are willing to obtain but you are short of cash are as explained above.

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