What is a payment plan that allows customers to make a deposit on an item before paying the full price?

A layaway plan is specifically designed to enable customers to reserve an item by making an initial deposit, with the understanding that they will pay the remaining balance in installments or by a specified deadline before taking the item home. This method provides a structured way for consumers to manage their finances while securing a product they intend to purchase.

The layaway process typically requires the seller to hold the item until it is fully paid off, which distinguishes it from other payment methods that involve immediate possession or usage of the product. It is particularly useful for customers who want to avoid debt, as there is no interest charged on layaway plans—payment is made upfront until the total price is met.

In contrast, an installment plan involves taking possession of an item right away while making periodic payments over time; a credit purchase allows consumers to buy a product immediately, usually through the use of a credit card, with the expectation of paying the amount back later, often with interest. A bargain sale refers to a sale at a reduced price but does not involve a payment structure like a layaway or installment plan. Thus, the layaway plan is the most accurate description of a payment structure that requires a deposit prior to full payment.