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I'm going to buy a watch for $100,000. The seller says that I can deposit $30,000 by wire-transfer, and then pay the whole thing off in 6 months, and after it is fully paid, I will get the watch. I can afford this, but why should I risk paying him this money, when I can just save this on my own without paying him a dime? Are there any advantages to layaway?

If It helps understand why I would spend that much on a watch here's a similar one: http://www.jomashop.com/audemars-piguet-watch-26322or-zz-1222or-01.html?utm_source=googleproduct&utm_medium=cpc&utm_campaign=googleproductsearch&pt_source=googleads&pt_medium=cpc&pt_campaign=(ROI)+Shopping+-+Non-Sale+Watches+$10000+-+25000&gclid=CK2zvua_oNQCFRBMDQodl1EMsQ

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    You would do that to guarantee the price of the item you're buying, and/or the item's availability. – quid Jun 2 '17 at 20:15
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    When you say $, I hope you mean pesos, rubles, lire or other penny currency. That amount in anglo-nation dollars is worth committing high fraud over, and you should be intensely on guard. The fact that wire transfer is involved suggests this is not an in-person deal with a blue-chip retailer. – Harper - Reinstate Monica Jun 2 '17 at 21:13
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    Would you make an unsecured $100,000 loan to the seller? Because that is what it is when you layaway. – Harper - Reinstate Monica Jun 2 '17 at 21:34
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    ...unsecured interest free loan. – JohnFx Jun 2 '17 at 22:34
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    If you can afford to spend $100,000 on a watch, you can afford to do things in a way that doesn't require you to wire $30,000 into the void. – BrenBarn Jun 3 '17 at 1:42
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Are there any advantages to layaway?

There are two main advantages.

First, when you pay the initial deposit the seller reserves the item for you at a given price. This is helpful with unique products, like a high-end custom-made watch. If there is only one of those watches in the entire world, then it's nice to know that the seller won't sell it to anyone else while you're getting together the remaining funds and the price you're paying is locked in.

Second, layaway agreements often allow for a payment plan. This is helpful for people who have a hard time saving up money. For many, it's easier to make smaller monthly payments than a large one-time payment.

Of course the cost of layaway is that you're $30,000 short for up to 6 months. This money could be generating a significant amount of interest during a half-year period. You'll need to make sure that reserving the item and locking in the price are worth this cost.

  • By, I can afford this I mean I can afford the layaway – Noah Cristino Jun 2 '17 at 20:24
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    @NoahCristino Thanks for the clarification. I've edited my response – Nosrac Jun 2 '17 at 20:28
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    "For many, it's easier to make smaller monthly payments than a large one-time payment." - This cuts both ways... if I was the OP, after saving $100,000 and seeing how much work that took, I would realise there were better things to spend money on than a $100,000 watch. With the layaway, I'd be stuck with the watch. – user253751 Jun 2 '17 at 23:18
  • Good point user20574 I don't want to be stuck into buying it – Noah Cristino Jun 3 '17 at 1:16

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