Rent To Own
A rental agreement may provide for the renter or lessee to become the owner of the asset at the end of the rental period, usually at the renter's option on payment of a nominal fee. Such arrangements may be known as
- rent-to-own, a term used in the United States for rental of furniture or appliances. The term is also used in the U.S. for real estate transactions, where the lessee has an option to purchase the property at a fixed price at a specified future time. Such arrangements are also known as lease-option, lease-to-own or lease to purchase option.
- hire purchase, used in the United Kingdom and other countries for the purchase of cars, other consumer equipment and business equipment. The term lease-purchase is also used.
- closed-end leasing, used in the U.S. and Canada for the leasing of cars. Unlike in hire purchase, the asset is sold at its residual value at the end of the term, rather than for a nominal amount.
Read more about this topic: Renting
Famous quotes containing the words rent to and/or rent:
“We want some coat woven of elastic steel, stout as the first, and limber as the second. We want a ship in these billows we inhabit. An angular, dogmatic house would be rent to chips and splinters, in this storm of many elements. No, it must be tight, and fit to the form of man, to live at all; as a shell is the architecture of a house founded on the sea.”
—Ralph Waldo Emerson (1803–1882)
“The arbitrary division of one’s life into weeks and days and hours seemed, on the whole, useless. There was but one day for the men, and that was pay day, and one for the women, and that was rent day. As for the children, every day was theirs, just as it should be in every corner of the world.”
—Alice Caldwell Rice (1870–1942)