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Appliance Leasing 101: Everything You Need to Know About Leasing an Appliance

by Rohan Mathew
Appliance Leasing 101: Everything You Need to Know About Leasing an Appliance

Whether you’re renting a new home or starting up your business, there are necessary costs. There are things that you’ll need for a shorter period and others for a longer period. You have to consider whether you’re going to lease or buy.

Appliance leasing often becomes a savior for many people, especially for equipment that is too expensive or you only need to use them for a short time. The method works as an alternative by turning your bigger purchase into smaller, affordable payments. 

If you’re considering leasing appliances, this article has everything you need to know about it.

What Is Appliance Leasing? 

When you lease an appliance, you don’t own it outright. Instead, the lender buys an appliance then rents it to you for monthly payment. At the end of the lease, you can renew your lease, purchase the appliance, or return it.

How Do I Lease an Appliance?

The process of leasing an appliance is very simple. You can complete the leasing process in just three steps.

What Do You Want to Lease?

First, find the item that you want to lease before reaching out to appliance leasing companies. The best sites to find your preferred items are the store and the websites that offer equipment leasing options. A good start will be your local store.

Do You Have a Leasing Plan?

After finding the item you intend to lease, turn to your leasing plan. This includes how often you will be making payments, your payment amount, and if the leasing company offers minimum and maximum lease terms.

Make sure you ask if there are purchase and return options, especially if you’re not going to use the equipment for long. This is because some lenders can dupe you, leaving you with obsolete equipment.

Make Payment for Your First Lease

Of course, you won’t be authorized to take your appliances home before making the first payment. However, you can arrange for later delivery if you cannot carry it along.

Why Should I Consider Appliance Leasing?

Lease-to-own appliances come with great financial relief. You’re able to go home with new appliances without paying hefty upfront fees, unlike equipment finance. It’s also the best option today because you can access high-quality and top-brand appliances while paying a manageable rate.

Also, leasing or buying appliances isn’t time-consuming, as it involves quick decision-making. It’s free to check your eligibility and approval amount, which means you don’t have to worry about any applicable fee. Appliances for leasing also provide you with flexibility because you don’t have to buy the equipment at the end of your contract.

Must I Have Good Credit to Lease?

You don’t need a good credit score to lease appliances because you’ll find shops that offer no-credit options. So, you don’t have to worry even if you lack a good credit rating to lease kitchen appliances. But there are still some requirements which you must meet to lease an appliance.

These requirements include a valid phone number, minimum monthly income, a valid photo ID, a valid email address, a valid Social Security number, and you must be 18 years old.

What Are the Benefits of Leasing Appliances?

What’s the need to buy an appliance that will become outdated in a few years? Look for appliance leasing companies to relieve the stress of dealing with losses when an item becomes outdated. Here are the benefits of appliance leasing.

You Don’t Have to Pay a Down Payment

If you don’t have the cash to carry expensive equipment home, appliances for leasing are the way to go. There is no need for the down payment and additional collateral to secure the appliance. You don’t have to risk your business or personal assets to secure a leasing agreement.

Appliance Leasing Doesn’t Damage Your Credit Score

Credit scores are very important if you want to gain financial freedom. Unfortunately, if you default on a loan or equipment finance, you lower your credit score. 

That isn’t the case with appliance leasing. The leasing company cannot inform your credit agency when you miss paying your rent-to-own payment. This leaves your credit score untouched.

Flexible Terms of Payment

You have several options when it comes to leasing agreements. You can choose to purchase the appliance after renting it. You can also choose to renew the lease if you want to continue using it without buying.

You can also trade your current appliance for a new or updated one. This is the major benefit of appliance leasing because you’re not obligated to hold onto your rented equipment. If your appliance becomes outdated, you can easily return it and get a new model.

You’re Not Responsible for Repairs

Note that when you take out equipment finance, you become fully responsible for the loan term. In case the equipment breaks down and needs repair, it’s your responsibility to fix it. Appliance leasing cost covers everything through the appliance leasing company agreement.

Appliance Leasing Setbacks

The disadvantages of equipment leasing cannot outdo the benefits. But anything that involves finances must have setbacks. Here are appliance leasing setbacks.

Long Payment Terms

The worrying issue with appliance leasing is the price. The leasing companies will seduce you with their super-low monthly payment plans. Ensure you don’t give in to this because the more you make payments, the higher the interest that goes into your monthly payments.

But fewer payments mean a lower interest rate. And that is how the leasing companies make their money.

Bad Reputations

Before you decide to lease appliances, check the leasing companies’ reputations. Remember to contact your local Better Business Bureau to provide you with information regarding the company. 

Check the number of complaints filed against that leasing company. You can also check customer’s feedback from the internet.

Purchase an Economical Lease

If you’re planning to move to a new home or open a business, don’t let low finances stop you from getting the needed equipment. Look for a reputable appliance leasing company and carry out your tasks without any setbacks. You might even find out that leasing is a much better option than buying.

We’re here to help you make your life easier and run your business without struggles. Read more helpful content on this site and always stay in the know.

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