8 Common Misconceptions About Lease-to-Own

November 15, 2024

Thinking about applying for a lease with Progressive Leasing? We’re happy to help you walk through the process so you can start shopping for the things you need! We’re sure you have questions about how lease to own works, how it’s different than financing or credit purchase options, or simply how the lease to own process works. Let’s dive in to a few of the common misconceptions shoppers have about Progressive Leasing and our lease-to-own alternative purchase solution.

Misconception: Progressive Leasing offers loans

The Facts: Progressive Leasing offers a lease-to-own purchase option. This means you pick a leasable item, Progressive Leasing purchases it from the retailer, and then you pay us back. Although there is a cost of leasing, Progressive Leasing doesn’t charge interest. After you’ve made all your payments, the item is yours to keep.

Misconception: Progressive Leasing is Rent-to-Own

The Facts: You don’t rent your merchandise from Progressive Leasing. We buy your chosen item from the retailer, and then lease the item to you. You’ll choose a flexible payment schedule that best fits your circumstances. Once you’ve made all our payments, the item is yours to keep.

Misconception: You will pay more over time with Progressive Leasing

The Facts: Before you complete your transaction, Progressive Leasing provides you with the Total Cost of Leasing. This includes the price of the item, the cost of leasing, and any taxes. You will not pay more than this amount.

Misconception: You’re stuck in the agreement once you sign with Progressive Leasing

The Facts: If you’re ever unsatisfied with your item or unable to make payments, you can cancel by calling our Customer Service at 877-898-1970. Once your item is successfully returned, you will owe no further payments.

Misconception: Progressive Leasing helps improve credit score 

The Facts: Progressive Leasing is not a credit or financial institution. While Progressive Leasing does obtain info from credit bureaus, applying for a lease should not affect your credit, nor do we report your payment history to credit institutions. As a lease-to-own purchase option, you will not build credit by using Progressive Leasing.

Misconception: Lease-to-Own is the same as financing

The Facts: When you finance something, you’re essentially borrowing money to purchase an item. Generally, this will include interest and other financing fees. With lease-to-own, Progressive Leasing buys the item from a retailer. You make payments until you’ve completed your lease agreement, or decide to return the item.

Misconception: There are penalties for paying off your lease early

The Facts: Progressive Leasing offers multiple, flexible ways to pay off your total lease amount. Some of those include 90 days (3 months in CA), or an early buy out option. None of Progressive Leasing’s early buy out options come with penalties, fines, or extra payments.

Misconception: I’ll be charged even if I return the product

The Facts: If you ever decide you no longer can or want to make payments, or want to return your merchandise, Progressive Leasing will take back your item and you will no longer owe any further payments.