> I don't see the connection between paying front up or in installments Paying up front typically means deferring the purchase until you can afford the full co

> I don't see the connection between paying front up or in installments Paying up front typically means deferring the purchase until you can afford the full cost. If it takes you a year to save up for the car/laptop/washing machine then that means a year of dealing with the more expensive alternatives. In many cases those costs exceed a the interest on the loan, making it a financially sound decision to purchase the item in installments. > A decent laptop can be bought on craiglist or similar websites for 150/200$ In my experience a craigslist computer is a crap shoot that is an irresponsible purchase unless you are experienced at repairing computers and keeping them going past end-of-life. The risk is just too great that it will not function or meet your needs which is not something you can afford. I'm not saying everyone needs the latest top-of-the-line MacBook, but the vast majority of people are better off buying refurbished and/or mid-level models that are not more than a few years old instead of a $150 craigslist special. Ditto with cars. Unless you know what you're doing, trying to depend on the absolute cheapest car from craigslist will end up being far more expensive in terms of time and money than just getting a decent used car in the first place.