installment plan

American  

noun

1. a system for paying for an item in fixed amounts at specified intervals.

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installment plan British  

noun

1. Also called (in Britain and certain other countries): hire-purchase.  a system for purchasing merchandise, such as cars or furniture, in which the buyer takes possession of the merchandise on payment of a deposit and completes the purchase by paying a series of regular instalments while the seller retains ownership until the final instalment is paid

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Etymology

Origin of installment plan

First recorded in 1875–80

Example Sentences

Originally proposed by Beardsley Ruml, an executive at Macy’s department store who encouraged shoppers to buy on the installment plan, withholding was cleverly called “pay as you go.”

From The Wall Street Journal • Jun. 9, 2026

Then someone could file for an extension to file a return in mid-October, and then they can set up an installment plan to pay the taxes they owe.

From MarketWatch • Apr. 6, 2026

Dividing a transaction into, say, a pay-in-four installment plan sounds straightforward and manageable.

From Seattle Times • Dec. 6, 2022

AT&T’s starts at $13.89 per month when you buy their installment plan.

From The Verge • Aug. 10, 2022

He had bought it on the installment plan to be paid for over a period of two years.

From "The Heart is a Lonely Hunter" by Carson McCullers