--- title: "lease-to-own: Definition and Meaning | NPSA" description: "Lease-to-own is a plan where a customer pays regular lease payments and may own the item at the end." url: https://npsa.preview.multisites.ai/glossary/lease-to-own publisher: National Portable Storage Association (NPSA) phone: "(816) 960-6552" email: info@npsa.org --- Leasing and finance # lease-to-own Lease-to-own is a plan where a customer pays regular lease payments and may own the item at the end. The FTC says these plans let people take an item home while they pay over time, often under a contract with weekly or monthly payments. Total cost can be much higher than a cash price. ## Why it matters A customer who wants a container or mobile office but cannot pay up front might consider this. The FTC warns that some plans cost about twice the cash price, and a missed payment can mean losing the item and what was paid. A common mistake is to focus on the monthly amount. The total price, fees and buyout terms matter more. Operators that offer a plan should state all terms in writing. Customers should ask for the cash price, the full cost and the purchase option. State and federal laws may apply. This is not legal advice. [Read: Rent or buy a storage container? How to decide](https://npsa.preview.multisites.ai/guides/rent-or-buy-storage-container) Definition source: [consumer.ftc.gov](https://consumer.ftc.gov/articles/buy-now-pay-later-rent-own-lease-own-and-layaway) ## Related terms [### rent-to-own Rent-to-own is a plan where a customer pays rent on an item and gains ownership after enough payments. The FTC groups rent-to-own with lease-to-own plans. The customer signs a contract, makes regular payments and takes the item home. Cost can be far above the cash price.](https://npsa.preview.multisites.ai/glossary/rent-to-own)[### finance lease A finance lease is a lease that works much like financing the purchase of an asset. W. P. Carey explains that leases are classified as finance when they have characteristics similar to financing a purchase. Under U.S. GAAP the lessee usually records the asset and a liability on its balance sheet.](https://npsa.preview.multisites.ai/glossary/finance-lease)[### rental agreement A rental agreement is the contract that sets the terms for renting a container or similar unit. RentalModo says it is usually two or three pages. It covers the rate, minimum term, damage rules, delivery and pickup, and fees. The fine print is often in clauses that renters skim.](https://npsa.preview.multisites.ai/glossary/rental-agreement)[### minimum rental term A minimum rental term is the shortest period a customer must pay for. RentalModo's sample agreement language says the minimum period is three months and that early termination requires payment of the remaining minimum balance. Other companies use one month or another length.](https://npsa.preview.multisites.ai/glossary/minimum-rental-term)[### residual value Residual value is an estimate of what an asset will be worth at a future point, often near the end of a lease or its useful life. Excedr says it depends on condition, age, demand, service history, obsolescence, removal costs and the terms of the agreement.](https://npsa.preview.multisites.ai/glossary/residual-value)[### used container A used container is a container that has served a working life, usually at sea, before being sold or rented for storage. Sellers grade used units, often as cargo worthy, wind and water tight or as-is. The grade affects price, appearance and how well the unit keeps out water.](https://npsa.preview.multisites.ai/glossary/used-container) [All 220 terms](https://npsa.preview.multisites.ai/glossary) For the industry ## Grow your portable storage business with NPSA Members get event rates, the Community Forum, the directory listing and leads from this website. [Join NPSA](https://npsa.preview.multisites.ai/join-us)[See member benefits](https://npsa.preview.multisites.ai/member-benefits) Need storage? ## Get quotes from NPSA member companies Tell us what you need and where. A member company that serves your area will contact you. [Request a quote](https://npsa.preview.multisites.ai/request-a-quote)[Which unit do I need?](https://npsa.preview.multisites.ai/find-storage)