Lease arrangements
Some firms specialise in leasing consumer goods. Other retailers offer leasing as one of a range of financing options. At the end of the lease the item may be bought cheaply, or a new lease taken out on a new item.
- People without a good credit rating may still be able to sign up to lease arrangements.
- These arrangements are often very expensive, and it may be difficult to get out of contracts once signed. Advertising often highlights the weekly cost, but it may be difficult to find out what the total payment will be, or what it would cost just to buy the item.
- Consumers may still be liable for lease payments if the item is stolen, lost or breaks, depending on the contract. Insurance may need to be on top of regular payments.
- Lease contracts may not give the same protection that a credit arrangement does.
