But Now Pay Later installment plans allow consumers to buy goods without paying the full amount in cash when they make their purchases down payment = cash to pay part of the purchase price balance = the rest of what the buyer owes on the purchase paid in equal payments over a period of weeks, months, or years allows a buyer to use a product while paying for it automobiles, houses, refrigerators, furniture, and other large items purchaser signs a written contract with the seller states amount of payments and how often they must be paid states that the item still belongs to the seller repossession if the customer makes late or incomplete payments, the seller can take back the item the purchaser loses the item and the amount of money that has already been paid on the item considerations service charges and interest on the unpaid balance of each payment bank loan may be cheaper make as large a down payment as possible to reduce total cost pay off the balance as quickly as possible to reduce the total cost