Banking & Finance
7. Rent-to-Buy Financing
Authors: Staff Legal Eagle
Firm / Chambers:
Last updated: 22 Jun 2015
- Rent-to-buy financing offers individuals the opportunity to take home their purchase straight away under a rental agreement.
- Regular payments need to be made for renting the item however you will be able to use it from the beginning of the contract.
- Unlike normal rental agreements you are also entering into a contract to purchase the item at the end of the rental period.
- You will have to continue to pay for the item even if it is lost, stolen or damaged.
- It can be a good idea to take out insurance to ensure that you are protected in the event that something does happen to the item.
- Make sure you understand all the terms and conditions that you are entering into particularly what it will cost you to break the agreement.
- For more information on similar financing arrangements see our Hire Purchase and Equipment Lease topic.
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