Definition

Noun: A method of purchasing goods or services where the buyer pays the price in a series of scheduled, partial payments (installments) over time, rather than paying the full amount upfront. The seller or a financing institution typically extends credit to the buyer for this purpose.

Usage

"Installment buying" refers to the overall system or practice of purchasing on an installment plan. - It is commonly used for major purchases like appliances, furniture, or electronics. - The term describes the financial arrangement itself.

Examples

• Noun:
  • The rise of installment buying in the 1920s made automobiles affordable for many families.
  • She preferred installment buying for the new sofa so she wouldn't have to deplete her savings.
  • Some economists warn that excessive installment buying can lead to personal debt problems.

Advanced Usage

• "to finance something through installment buying": To use the installment system to pay for a specific item.
  • They financed their home renovation through installment buying.

Variants and Related Words

• Installment plan (n): A specific credit agreement for a purchase, detailing the payment schedule. Often used synonymously with "installment buying."
  • The store offered an interest-free installment plan for six months.
• Hire purchase (n, chiefly UK): A system similar to installment buying where the buyer uses the goods but does not own them until the final payment is made.
• Layaway (n): A different system where the item is reserved for the buyer who makes partial payments until it is paid in full, at which point they take possession. Contrast with installment buying, where the buyer receives the item immediately.

Synonyms

• Credit purchase: A purchase made with borrowed money to be repaid later.
• Time payment plan: A plan allowing payment over a period of time.

Related Phrases

• Buy on credit: To acquire goods with a promise to pay later.
• Make payments: To pay each installment.
  • You will make payments on the loan every month.

Noun

1. a system for paying for goods by installments