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How Lease-Purchase Programs Work

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The majority of people get married in their late 20s. Once that happens, it’s time to start looking for furniture, appliances, and electronics to furnish their new home with.

Unfortunately, for many people, renting or buying a home costs as much as they can manage — going out and buying new products to fill that home with is often out of the question.

For people in this type of position, lease-purchase programs are there to help with finance options on major products.

Lease-purchase programs involve a payment plan with which you get to buy brand new, name-brand merchandise, and pay for it over the course of a few months or years in weekly cash installments. Appliance financing, furniture financing, and more are among the many choices provided by lease-purchase programs.

There are many advantages to using a lease-purchase program. One significant benefit is that, unlike buying on credit, it doesn’t matter what your credit score or credit history is like. This makes lease-purchase programs especially attractive to younger people who haven’t had time to build up much of a credit score yet.

The following are some additional distinct advantages of lease-purchase programs, as laid out by the Association of Progressive Rental Organizations, an organization that lobbies for rent to own furniture and merchandise stores:

  • – You can enjoy brand new, name brand products without having to have a large sum of money to buy with upfront or taking out credit.
  • – Generally, people participating in lease-purchase programs are allowed to return any item at any time, with no obligation to continue making payments if you suddenly can’t afford them.
  • – There’s no need to undergo a credit check, so bad credit histories — even bankruptcies — don’t have any impact on your eligibility.
  • – If customers of a lease-purchase program miss a payment or stop paying, while they will have to return products they have stopped paying for, they will not receive a stain on their credit history. This is because lease-purchase programs are no-credit transactions.
  • – Because it isn’t a loan, lease-purchase programs and their payments don’t incur interest over time.
  • – Even though a poor experience with lease-purchase programs cannot negatively impact your credit score, by making your payments on time and following through with your commitment, you will actually improve your credit.

Lease-purchase programs are also ideal for people who, for some reason or another, only need a high end product for a short time. This could include anyone from sports fans who want to lease a TV for a football game, to people moving to a new city for just a few months, to people needing to temporarily replace electronics or appliances while theirs are being repaired.

Whether you’re turning your new house into a home with low cost furniture and appliances, or just acquiring products for short term use, lease-purchase programs are a convenient and useful option for everyone.