By Katapult on Oct 1, 2025 2:06:23 AM
Maybe your dryer is on the fritz. Maybe you need a ring to pop the question. Or maybe it’s time to finally replace that 30-year-old mattress.
If you’re shopping around for an investment item, you might be wondering: Is lease-to-own a good idea for you?
The short answer? It definitely can be!
Lease-to-own companies provide a flexible path to a product you need now. While it’s not the right fit for every circumstance (hint: you wouldn’t use it to buy stuff you can get at the dollar store), it’s a practical and accessible option when you don’t have full-price cash in hand, just need temporary use of an item, or aren’t sure if an item is the right long-term fit for you.
How Does Lease-to-Own Work?
Before you can decide whether lease-to-own is the best option for your situation, you need to understand how the process works.
Rather than paying in full for products like furniture, electronics, or appliances, you can lease the product now and decide later whether to own it. For instance, lease-to-own can give you immediate access to a $1200 replacement laptop for work, without requiring you to pay the full amount up front.
Retailers partner with lease-to-own specialists like Katapult to provide this option to shoppers. Instead of paying money to the retailer, you jump to a simple and speedy application that contracts Katapult to pay your bill in full. Depending on the cost of the item, you have a year or more to make monthly lease payments to Katapult. Each month, you can decide whether to buy, return, or continue to lease the item.
Ultimately, instead of the long-term obligation you get from traditional financing, lease-to-own offers greater flexibility and the chance to use items for a limited time without the burden of ownership.
When Is Lease-to-Own a Good Idea?
In the right circumstances, lease-to-own is financially safe, practical, and worth it for your budget. Consider a lease-to-own option when you need to obtain an appliance or other high-priced item and:
- Prefer manageable monthly payments rather than an up-front lump payment
- Want to test out a product before you decide whether to fully purchase it
- Need to use an item for a limited time, but don’t want to keep it forever
- Are cautious about long-term financial commitment
Additionally, lease-to-own empowers more individuals than traditional financing options. For instance, lease-to-own is ideal if:
- You have no credit history
- You have a poor credit history
- You’ve been declined credit cards or BNPL (buy-now-pay-later) offers
Whether you don’t qualify for traditional financing or simply want more time and flexibility to pay, lease-to-own can be an optimal choice for your budget.
What Are the Pros and Cons of Lease-to-Own?
No single payment method is right for every transaction. Understanding your range of options (as well as their benefits and drawbacks) before making a purchase can help you choose what works right now for your budget and goals.
Lease-to-own advantages include:
- Lower upfront cost to obtain an item you need
- No adding on to credit card or personal loan debts
- Use of an item before deciding whether it’s worth keeping
- Quick and simple application with no credit check
However, there are some potential drawbacks to consider:
- Ongoing monthly payment added to your budget
- Higher total cost than paying upfront in full
- Delayed ownership
How Is Lease-to-Own Different from Renting?
What lease-to-own and rental arrangements have in common is that you’re paying a monthly bill to have the use of something. With rent, however, that’s where the contract stops—no matter how many months you pay, you never own the products that you rent.
On the other hand, lease-to-own offers a path to ownership. After the first month, you’re able to decide at any time whether to:
- Continue to lease the item
- Buy out your item (i.e. purchase it to have full ownership)
- Return the item
Is Lease-to-Own Better than Buy Now, Pay Later?
Lease-to-own isn’t just another name for buy now, pay later (BNPL) financing. While these two payment methods have surface similarities, lease-to-own offers:
- Longer terms (BNPL plans typically only cover a six-week period)
- More payment flexibility, thanks to longer terms
- Broader access (e.g. with no credit check, lease-to-own is more accessible)
- A welcome mat for those with limited or no credit history
Plus, with the right lease-to-own provider, you can pay $0 in late fees. Compare that to BNPL plans, which typically charge late fees and report late payments to credit bureaus, which can negatively impact your overall credit.
Katapult Offers Quick and Easy Lease-to-Own Payment Plans
So, is lease-to-own a good idea? In most cases, the answer is a resounding yes. Lease-to-own is the perfect fit if you’re in the market for more control, flexibility, and access when buying the items you need.
With Katapult, you can easily access products from a growing network of retail partners, both online and in-store. The application process is fast, the terms are transparent, and there’s no credit required to apply!
Learn more about how Katapult works, and decide whether lease-to-own fits your needs and goals.
Sources:
Federal Trade Commission Consumer Advice. Buy Now, Pay Later, Rent-to-Own, Lease-to-Own, and Layaway. https://consumer.ftc.gov/articles/buy-now-pay-later-rent-own-lease-own-and-layaway#understand