Installment Purchase

An installment purchase is a purchase which is paid for via a series of installment payments. Installment purchase arrangements are offered by many merchants and service providers in order to facilitate sales to buyers who cannot afford to pay for purchases up front in cash.

Installment purchases are typically settled in full at the time of purchase using a loan provided by a lender. The buyer then repays the loan provided by the lender through a series of loan repayments. Typically, interest is charged on the loan, resulting in a final price higher than the ticket price of the product of service being purchased.

Some merchants and service providers use in-house financing to provide installment loans. Others make use of financing from third-party lenders. Merchants may offer store cards to facilitate installment purchases.

More on this topic:
Swiss credit card comparison
Swiss personal loan comparison

About moneyland.ch

moneyland.ch is Switzerland’s independent online comparison service covering banking, insurance and telecom. More than 70 unbiased comparison tools and calculators are available on moneyland.ch, along with useful financial guides and timely news. The comprehensive comparison tools help you to find the right insurance policies, bank accounts, credit and prepaid cards, loans, mortgages, trading accounts and telecom products for your needs.