Purchase Options: An Overview

Purchase options

To save money, the customer may choose to pay off their lease-to-own agreement earlier than the standard 12-months to ownership by calling in to Progressive Leasing at [phone].

Watch the video or scroll down to learn more about purchase options.

Let's check out the purchase options in more detail. We'll use the example of Josh wanting to purchase a mattress.

Josh decided to use Progressive Leasing to lease-to-own a mattress. In order to take ownership of the mattress, Josh needs to:

• make all recurring payments or
• exercise an early purchase option.

Josh can contact Progressive Leasing to discuss and or select a new available purchase option any time after he receives his welcome letter, which arrives by email within a few days of receiving his mattress. 

The lease-to-own agreement has options:

• the standard lease offers 12 –months to ownership
• the 90-day (or 3-month in CA) purchase option
• and the early purchase option. 

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12-month purchase option

Josh is automatically enrolled in the 12-month purchase option which allows him to take ownership of the mattress in 12 months as long as he makes all of his recurring payments. 

The 12-month lease-to-own total includes the cash price, or the cost of the mattress, plus the lease-to-own cost which is the cost to lease-to-own over 12 months along with any applicable taxes. 

This purchase option is automatically set up when Josh signs his lease-to-own agreement.

The benefits of the 12-month purchase option are: 

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90-day purchase option

 The 90-day (or 3-month in CA) purchase option allows Josh to take ownership of the mattress early for a reduced lease-to-own cost. However, Josh must contact Progressive Leasing to exercise this option.  Also, this option must be paid within the first 90 days of the lease-to-own agreement, meaning the amount paid in the 90-days would be larger than the 12-month option. 

The 90-day lease-to-own total includes the cash price, plus a lease-to-own cost and applicable taxes. 

The benefits of the 90-day purchase option are:

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3 mo in California purchase option

Customers in California have an option like the 90-day option, but it is a 3-month purchase option that takes the place of the 90-day purchase option. It is different from the 90-day option in 3 ways. 

1. It is only available in California
2. It is valid for the first 3 months of the lease, not the first 90 days
3. The 3-month lease-to-own total includes only the cash price and applicable taxes.

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Early purchase option

If Josh wanted to take ownership before 12 months and save on the lease-to-own cost but cannot do so within the first 90 days (or 3 months in California), he can always take advantage of the early purchase option.  

The early purchase option allows Josh to take ownership of the mattress early at any time before 12-months for a reduced lease-to-own cost.

The early purchase lease-to-own total is calculated using a formula specific to the state in which Josh lives. The amount of the early purchase varies, but you will pay a portion of the remaining 12-month lease-to-own total. In other words, the early purchase amount will change after every recurring payment. The sooner Josh takes advantage of the early purchase the less he will pay. 

The benefits to the early purchase option are:

When discussing purchase options with customers, be transparent about all of the options we provide and the benefits offered by each one. Then allow the customer to decide which option is best for them.

Remember, the customer is automatically enrolled in a standard 12-month lease-to-own agreement.

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