When Should You End-of-Lease-Option Purchase?

Rent-to-own options may allow you to elect a lease option purchase at the end of your contract. This can reduce the buy-in price of an otherwise large purchase. Choosing an end-of-lease option is not always a good idea, though, and the benefits will depend on several factors with your lease. 

Quality of Rental

If you have been leasing an automobile, you will know best the quality of care you provided to that vehicle. For example, you will know if you maintained regular oil changes and services. The same is true for nearly any rental: you will know the quality you have maintained. It would not make sense to purchase an item that has been improperly maintained.

Price of Newer Options

You may find you can purchase a brand new asset instead of your leased item for the same price. If this is the case, you will benefit more from purchasing the new item than purchasing the end-of-lease option on your used item. For example, purchasing a three-year-old car for the same price you could purchase a brand new car will end up putting you in a less favorable financial situation down the line. Always consider the options to purchase a new home, car or other asset to compare value.

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