Layaway is an attractive payment option for many consumers, allowing for payment installment plans that make purchasing big-ticket items more manageable for their budgets.
Given the appeal of such programs, it’s no surprise that buyers frequently inquire about the availability of layaway plans at popular stores like Lowe’s.
In this article, we take a deep dive into the question: does Lowe’s offer a layaway plan? In doing so, we’ll explore the alternative payment options available at Lowe’s and compare them with those of other stores.
Does Lowes Offer a Layaway Plan?
After conducting thorough research and examining Lowe’s policies, it becomes evident that Lowe’s does not offer any layaway options.
The absence of a layaway payment option might seem disappointing to some buyers, especially those considering major home improvement projects.
However, Lowe’s understands the need for flexible payment options and has implemented several programs to address this need.
If you’re shopping at Lowe’s and want to break down your purchase into manageable payments, read on to discover alternative options.
Alternative Payment Options at Lowe’s
Even though there is no traditional layaway plan at Lowe’s, the store offers a variety of alternative payment options to help customers manage their purchases.
These options include Lowe’s Lease to Own Program, Special Financing for Lowe’s Advantage Cardholders, and using payment-splitting services like Klarna. Each of these plans has its benefits and drawbacks, which we will explore further.
Lowe’s Lease to Own Program
The Lowe’s Lease to Own Program, operated in partnership with Progressive Leasing, is designed for customers who aren’t eligible for traditional finance options.
This program allows customers to rent-to-own eligible items and spread out payments over time. To apply, customers can visit Lowe’s website and complete a straightforward application.
To be eligible for the Lease Purchase option, customers must satisfy certain requirement, such as being over 18 years old, having a valid Social Security or Taxpayer Identification number, having a checking account that’s been active for more than three months, having a credit or debit card, and receiving a monthly income of at least $1,000.
It’s important to note that not all items at Lowe’s are available through the Lease to Own program.
Special Financing for Lowe’s Advantage Cardholders
The Lowe’s Advantage Card offers its cardholders several financing options. One such feature is the Special Financing, which grants cardholders six months of no-interest payments on purchases of $299 or more when the balance is paid in full within that period.
Another financing option, available exclusively to Lowe’s Advantage Cardholders, is the 84-Month Fixed Payment plan.
This plan allows customers to finance large purchases (typically over $2,000) with 7.99% APR and fixed monthly payments over 84 months.
Lowe’s Advantage Card also comes with a 5% discount on eligible purchases, which provides additional cost-saving opportunities for shoppers.
Most importantly, the card doesn’t require a credit check and can be given to both employees and subcontractors of the firm.
However, keep in mind that you must have a good credit score to be eligible for a Lowe’s Advantage Card.
Payment Splitting Services like Klarna
Klarna is a third-party payment splitting service that allows customers to break down their purchases into equal payments over time.
While Lowe’s doesn’t directly support Klarna payments, customers can shop through Klarna’s app to access Lowe’s and split their payments.
Pros and Cons of These Payment Options
While these alternatives to layaway have solved the payment dilemma for many, they have their own set of pros and cons.
The Lease to Own program, for example, offers a rent-to-own solution for customers who don’t qualify for traditional financing.
However, this option is limited to certain items and requires customers to meet various eligibility criteria.
Lowe’s Advantage Card allows customers to take advantage of interest-free payments and extended financing options. However, not all customers will qualify for the card or be able to responsibly manage a new credit line.
In addition, cardholders might be tempted to make more purchases, potentially leading to increased debt.
Klarna presents customers with the option of spreading payments over time, but they’ll have to shop through Klarna’s app instead of directly on Lowe’s website.
This extra step could be inconvenient, though, and may not be ideal for customers who value a streamlined shopping experience.
Impact of Lowe’s Payment Options on Customers
Offering a range of payment choices such as the Lease to Own program, Special Financing for cardholders, and accepting Klarna as a payment method, Lowe’s demonstrates a customer-friendly approach that accommodates diverse financial circumstances.
It provides avenues for customers who cannot make upfront payments for large purchases or for those who are looking for flexibility in managing their financial commitments.
Lease to Own Program
The program allows customers to take the product home after an initial payment and then continue paying for it over time. This can be beneficial for customers who need the product immediately but may not have the money upfront. This can also be a great option for individuals who might not qualify for traditional finance options.
Special Financing for Lowe’s Advantage Cardholders
The perk of interest-free payments for six months or extended payment terms with a fixed APR can make high cost purchases much more manageable. This type of program incentivizes using Lowe’s Advantage Card to finance large purchases.
Klarna Payment
The collaboration with Klarna, a third-party service, opens up yet another avenue for budgeting payments. This can be helpful for customers who want to spread out their payments over a period of time without accruing interest, provided payments are made in a timely manner.
Need for Financial Responsibility
While these programs provide the customer with extended financial flexibility, they also demand a high level of financial responsibility. Customers must assess their ability to meet these financial obligations over the potential program duration period.
Risk of Debt with Lease to Own
While the initial convenience of Lease to Own programs is clear, customers must carefully consider their long-term financial potential to fulfill this commitment. If not properly managed, customers could find themselves sinking into debt.
Lowe’s Advantage Card Interest
The Lowe’s Advantage Card’s interest-free period seems beneficial at first. However, customers need to be aware that failing to pay the full balance within the stated period results in retroactive interest charges, which may lead to a sudden unexpected financial burden.
Relying on Klarna
Using Klarna may seem convenient due to the ability to split payments, but relying on such services requires careful budget management.
Late payments or defaults on Klarna-induced payments could lead to interest charges and harm the customer’s credit scores.
Balanced Financial Decision
Each of these options should be considered in light of an individual’s financial circumstance. While they make large purchases more accessible, they also bear long-term financial implications that can impact a person’s financial health.
Therefore, a balanced approach is suggested when using these options, considering both their current convenience and the potential future financial commitments.
Comparisons with Other Stores
Many stores offer layaway plans or have similar alternative payment options to accommodate customers with various financial needs.
Major retail chain Walmart, for instance, offers a layaway program for certain items during specific times of the year.
Home Depot, a competitor of Lowe’s, does not provide a layaway plan but offers project financing with its Consumer Credit Card, which can be used for home improvement projects.
These comparisons show that layaway plans and similar financing solutions are not exclusive to Lowe’s.
Different stores have unique programs and partnerships designed to ease the financial burden of their customers. It’s essential to research and consider individual financial situations when deciding on the right payment option.
Conclusion
In conclusion, Lowe’s does not offer a traditional layaway plan. However, they have implemented a variety of flexible payment options for customers, including their Lease to Own program, Special Financing for Lowe’s Advantage Cardholders, and third-party payment-splitting services like Klarna.
Each alternative comes with its own set of advantages and disadvantages, so it’s critical to examine them carefully before making a decision.
By considering your financial circumstances and shopping preferences, you can make better choices for your purchasing journey at Lowe’s — or any other store you visit.