I am not kidding -- a few months ago I asked a local Harley-Davidson retailer if they would consider doing a layaway on a great used bike I spotted. The guy looked at me and said: "No, man -- we don't do that." I felt like a nerd as the guy just walked away sort of laughing at me.
Hey, in times like these, layaway is making a comeback.
It is a way to buy stuff over time without taking a loan.
I have bought plenty of stuff on layaway over time. Years ago, we bought furniture on layaway. I think I bought my wife's engagement ring on layaway.
The Wall Street Journal's Wallet blog says lots of retailers are opening their layaway plans
The Journal points to TJ Maxx and Marshalls as offering layaway plans.
The Journal says Wal-Mart axed its layaway plan in 2006.
The AP said:
Layaway -- the practice that allows people to pay for everything from tools to televisions bit by bit before taking their items home -- is back in advertisements for the first time in years for discount chain Kmart.
In a national campaign launched last week, the ads proclaim "beat the rush and pay the easy way with Kmart layaway." They mark the first time many shoppers have even heard the phrase, even though the chain has offered the option for decades.
"In the backdrop of this economy, it all of a sudden has a great deal of relevance," said Tom Aiello, a spokesman for the Hoffman Estates-based subsidiary of Sears Holdings Corp.
Discounter Burlington Coat Factory Warehouse Corp. -- one of the few remaining national chains offering the option -- saw its percentage of layaway sales grow from 4.6 percent in August to 5.3 percent last month.
But even as consumers worried about personal finances and diminishing credit limits may show a renewed interest in layaway, experts say the practice -- which accounts for a fraction of overall sales and has been a dwindling segment -- likely won't make a full-fledged return to stores any time soon.
As the
WSJ blog points out, these plans are not always free:
Most stores charge a fee for setting aside the merchandise, and ask for a down payment. Kmart requires customers to pay a $5 service fee and a $10 cancellation fee upfront, or put down 10 percent of the item's cost, whichever is greater. Customers must make biweekly payments over eight weeks to pay the balance. In case of default, the item goes back into stock and the customer receives a refund, minus the $15.
Then there is eLayaway, which is an online service that lets you pay over time and sends your stuff when you pay it off. It is a plan that might appeal to folks with bad credit or no credit card and inadequate cash reserves. Unfortunately, Harley-Davidson is not one of the 1,000 merchants listed on their site.
Sigh.
If you decide to localize the story, we did a...
