What is a Layby?

A layby is an agreement between a consumer and a trader (e.g. a retailer) in which you pay for goods in two or more instalments, and the retailer holds onto the goods until you have paid off the amount owing on the goods. You don’t own the goods until you have made the last payment.
In a layby sale you should not have to pay any interest or other fees (except perhaps a storage fee in some cases).
In a layby sale: 

• Goods will be supplied to the consumer but the consumer doesn’t take possession of the goods until an agreed portion of the price has been paid, and 

• Payments are to be made in three or more instalments (2 or more if the agreement specifies that it’s a layby sale) and

• The price is less than the upper limit for Disputes Tribunal cases (currently set at $30,000)

• No interest charges or credit fees are charged to the consumer (otherwise it is effectively a credit contract)