Layby Flights Guide
Book flights now and pay in instalments - our guide outlines the airlines, travel agents and banks offering layby-type payment offers
Updated 4 December 2020
Flights are an expensive upfront purchase that can be difficult to budget. Buying return flights from Auckland to Christchurch at short notice can easily cost over $1,000 or even $1,500 for a family of four, which is out of reach for many people. The concept of flight ‘layby’ is routinely asked by MoneyHub users; this guide is our response to explaining what's available.
Know this: Paying for flights using layby is possible, but it tends to be limited. However, some options listed below are similar to layby and have broad appeal with many New Zealanders.
Disclaimer: While MoneyHub advocates saving up to make big-ticket purchases like flights, we realise this isn’t realistic in many emergencies. This guide outlines services and products that make buying flights more affordable.
Our guide covers;
Know this: Paying for flights using layby is possible, but it tends to be limited. However, some options listed below are similar to layby and have broad appeal with many New Zealanders.
Disclaimer: While MoneyHub advocates saving up to make big-ticket purchases like flights, we realise this isn’t realistic in many emergencies. This guide outlines services and products that make buying flights more affordable.
Our guide covers;
Four Ways to Layby Flights (or at least spread out the payment)
Unlike everyday shopping, buying a flight in instalments is rare. To explain what’s available, and how you can take advantage of it, we detail what’s on offer right now. The list below includes airlines, online travel agents, banks and payment methods serving New Zealanders.
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Companies offering staged payments1. MixandMatch.co.nz – Mix & Match customers can pay for flights to international and domestic destinations using Laybuy. Once booked, the cost is spread over six automatic weekly payments (consistent with all Laybuy repayments). There is no interest, and unless you pay late. You’ll need to pay one-sixth of the price at checkout, and a processing fee added which we estimated to be around 5% of the total airfare. For example, if the total airfare was $1,000, you’d pay 6 X $175 payments which brings the total cost to $1,050.
Our Laybuy review explains how the scheme works in full. Our view: Mix & Match is the only authentic layby scheme for flights, allowing you six weeks to pay off the purchase. It’s arguably better than a credit card if you have difficulties clearing the balances due month on month. However, before booking any flight, check the refund and change conditions if you believe there is a chance your plans could change. 2. CheapAir.com – The NZHerald explains the launch of this unique scheme, which charges 10% to 30% interest p.a. on the flights. For example, if you booked a $1,000 airfare and took six months to pay it off, at a 10% p.a. interest rate you could expect to pay an extra $50 in total. The scheme is outlined here. Our view: CheapAir.com is run out of America, and while New Zealanders are eligible, it’s not a typical transaction. Layby payment may also be declined |
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Airline ‘lock in the airfare’ offersMany airlines offer ‘lock in the price now’ and pay within 24-72 hours schemes. This isn’t a form of layby, but it does cap the total price of your airfares to what you first 'lock-in'. Airlines offering such schemes include:
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Afterpay, Laybuy and other Buy Now Pay Later(BNPL) schemesDespite Jetstar launching Afterpay as a payment method in 2017, the option is not available to New Zealanders. No other airline accepts any BNPL schemes, so this payment method is not available. However, you can book flights using LayBuy with MixandMatch.co.nz, as outlined above.
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​Credit cards interest-free and delayed repayment offersFew credit cards offer interest-free purchases, although the ASB Light Visa is a leading example. If you're flying in the future and not in a rush to book the flights, this card offers six-months of interest-free repayments for any single purchase over $1,000. We outline the offer below in more detail:
ASB Visa Light
The deal:
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Layby Flights – Our Conclusion
- Buying flights with layby is relatively rare, with only Mix & Match offering a BNPL option with its partner Laybuy. You'll need to pay off the purchase within six weeks.
- The ASB Visa Light, a zero-fee credit card, allows you to maximise an interest-free period of up to six months (for purchases over $1,000) while you make repayment.
- Other than the options listed above, most airlines offer a lock-in fare promotion to guarantee you won't pay anymore for your airfares. However, a fee for this service normally applies.