Down payment (or downpayment, also called a deposit in British English), is a payment used in the context of the purchase of expensive items such as a car and a house, whereby the payment is the initial upfront portion of the total amount due and it is usually given in cash at the time of finalizing the transaction.
Thus whenever an item normally of large value is purchased, a part of the amount will be paid at the spot and the balance will be agrees to be paid in equal monthly instalments for a fixed interest rate agreed upon the buyer and the seller.
