Lithuanians – Fans of Quality
Lithuanians frequently choose to pay in installments when shopping in home electronics retail stores. According to Donatas Zalobaitis, Executive Director of Topo Centras, people purchase both mobile phones and large household appliances through leasing: "In the electronics sector, mobile phones and laptops dominate, as these devices are essential for almost everyone. Often, buyers opt to lease an entire set of kitchen appliances—ovens, stovetops, refrigerators, or even coffee machines. This is particularly convenient for people furnishing new homes or renovating existing ones, as they can acquire all the necessary appliances at once while spreading out payments over a longer period. Speaking of coffee machines, investing in a professional-grade coffee machine is also an economical decision—monthly leasing payments are often lower than the amount one would spend on buying coffee at cafés every day."
Zalobaitis also highlights that Lithuanians value quality. Modern household appliances are designed to consume less energy and be more environmentally friendly. These appliances tend to be more expensive, but their higher efficiency and lower energy consumption make up for the cost difference in the long run. This is why leasing such products is a popular option.
Another standout category of items frequently purchased on lease is gaming products and game consoles: "The demand for leasing these products spikes during the Christmas season, but interest remains strong throughout the year."
Leasing Peaks in Late Spring
While the holiday season influences leasing payments, Donatas Mickus, Head of Sales at Inbank, notes that May and June are particularly active months. As the warm season arrives, people tend to purchase garden maintenance equipment on lease.
"During this period, we see an increased demand for robot lawnmowers, outdoor furniture, and grills. Additionally, leisure products such as bicycles, electric scooters, and even ATVs are popular. However, household appliances, computers, phones, and televisions remain among the most frequently leased items during these months as well," says Mickus.
Leasing Preferences Among Higher Earners
According to Inbank data, both men and women opt for leasing, although women are slightly more likely to use it. The most active group of customers falls within the 26-40 age range, with the average amount financed reaching up to €1,000. The most common leasing term is under two years.
"We observe that financing is not only relevant in major cities. More and more customers choose to pay in installments both in physical and online stores. Additionally, we see a shift in regional shopping patterns—local sellers are becoming less prevalent, while larger retail chains, which operate both online and in physical stores across Lithuania, are gaining market share," says Mickus.
He also highlights a global trend: individuals with higher incomes are increasingly choosing installment payments. In many cases, this decision is not driven by a lack of savings but by the convenience of better managing expenses. Mickus points out that customers opting for interest-free plans may actually save money in the long run, considering inflation.
"A few years ago, customers preferred to purchase one item, pay it off, and only then consider another purchase. This trend has changed significantly. We now see customers purchasing multiple items at once from the same retailer. This indicates that they are not just financing a single high-value item but rather an entire shopping cart. In many cases, the total monthly installment payments for multiple purchases remain under €300 per month," Mickus explains.
What’s Popular Among Generation Z?
When purchasing items on lease, Lithuanians are increasingly prioritizing the security of their devices. Zalobaitis notes a growing trend where customers add insurance or extend warranties when leasing electronic products to avoid unexpected expenses in the future.
Inbank has also observed significant growth in other leasing sectors, such as medical services financing. According to Mickus, another increasingly popular product is leasing with the option to pay off the balance within the first three months without any extra fees: "This product is particularly popular among Generation Z. We also notice strong customer loyalty—once they pay off their previous purchases, they immediately use this payment method again for new items."
Although overall product prices have remained stable, the total amount financed has decreased compared to 2023. Mickus attributes this shift to rising Euribor interest rates, which have impacted personal finances. To maintain financial balance, consumers are opting for lower-value purchases and longer repayment terms, even if it means higher total costs in the long run.
