What does layaway mean?
Layaway is a payment arrangement that allows a customer to buy an item in installments while postponing possession until the entire price has been paid. A shopper might select a coat, pay a deposit at the shop, and return each month to make another installment before collecting it. The expression “on layaway” describes both the purchase and the goods’ status during payment. Once the final installment is settled, the customer can take the item home. The practice is chiefly associated with North American retailing and differs from ordinary credit because the seller retains the item until payment is complete. Although layaway now has a somewhat old-fashioned commercial image, it remains a recognizable alternative to both cash purchases and interest-bearing credit, especially for major household goods and clothing.
A purchasing arrangement in which a customer pays in installments and receives the goods only after paying the full price.
"They bought the dining table on layaway."
Chiefly North American; the standard expression is “on layaway.”
Relating to or used in a purchase arrangement in which full payment is made in installments before the goods are released to the customer.
"The store offers layaway payment for selected furniture."
Commonly used attributively in expressions such as “layaway plan” and “layaway store.”
The plural is used for individual layaway arrangements or purchases.
"The shop has discontinued its layaways for large appliances."
Layaway lets you take a shopping home now—but not the merchandise until you have paid for every installment.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does layaway come from?
The compound arose in the early 20th century from the verb “lay,” meaning to put aside, and “away,” meaning into a separate or reserved place. “Lay” ultimately comes from Old English lecgan, while “away” developed from Old English on weg, literally “on the way.” The combination conveyed the idea of setting something aside until it had been fully paid for.
Related word forms
How layaway is actually used
The term is chiefly used in North American English and is especially associated with installment retailing. The usual expression is “on layaway”; in British English, “lay-by” is sometimes used for a similar arrangement.