Lease To Own Definition
Lease To Own purchase is a lease arrangement combined with an option to purchase the item leased within a predefined period at a given price. The agreement gives the borrower the right, but not the obligation, to purchase the item. A portion of the total rental payment goes toward paying down the value of the item in case the borrower wants to exercise the option. The renter has to pay an option fee and a rent premium as well, which is not returned to the borrower if he or she does not buy the leased item.