How does an installment sale benefit buyers compared to a lump-sum payment?

An installment sale benefits buyers by allowing them to make payments over time instead of requiring a lump-sum payment upfront. This flexibility can make larger purchases more manageable, especially for buyers who may not have sufficient cash available at the time of the purchase. By spreading the cost over a series of payments, buyers can maintain better cash flow, allocate funds to other expenses, and avoid the financial burden of a significant one-time cost.

In contrast, lump-sum payments may strain a buyer's financial resources, leading to potential difficulties in managing expenses and budgeting. Installment sales can aid in making larger items or investments more accessible to a broader range of consumers. Furthermore, this payment method often aligns more comfortably with a buyer’s income patterns, allowing for considerations of their financial situation over time.