During the repayment period, ownership (title) of the item does not pass to the buyer. Upon the full payment of the loan, the title passes to the buyer. Installment buying is a social innovation that expands the economy with additional income. Cyrus McCormack (1809-84, one of the inventors of the harvesting machine) pioneered it in the early 19th century US, and Issac Singer (1811-75, one of the inventors of the sewing machine) made it a common practice. The UK term is hire purchase.
Use installment buying in a sentence
If you can not fully afford to purchase something at that time you may ask if you can get an installment buying plan.
While some believe paying for big ticket items outright is preferable to installment buying, we are finding that more consumers would rather take home their big ticket items and pay for them over time than wait until they have saved enough to pay for them all at once.
I preferred installment buying, so I could pay at certain increments and whenever I wanted it and I would not have to pay it all at once.