Leasing or renting goods – your consumer rights
Many stores let you rent electrical appliances, computers and household goods. Here’s what you need to know before signing a lease, and what to do if things go wrong.
How consumer leases work
A consumer lease is a contract that lets you rent an item for a set amount of time. You make regular rental payments (weekly, fortnightly or monthly) until the term of the lease ends. Note that you won’t own the item at the end of the lease – the company you are leasing it from does.
At the end of the lease, you can either:
- return the item in good order and not have to make any more payments, or
- offer to buy the item or suggest someone to give it to. The company you are leasing from will tell you how much you need to pay to keep it.
Before signing a lease agreement
Leasing goods is often marketed as a cheaper option to buying them, but it can end up being a lot more expensive.
If you choose to enter a consumer lease, do your homework and know what you’re getting into. Always read the contract terms and conditions.
Key things to consider
- Compare the total cost of the lease or rental with what it would cost to buy the same product outright.
- Don’t be pressured.
- Shop around.
- Do your calculations and compare with other options such as paying in cash once you’ve saved the money or getting a personal loan.
- Read all the leasing documents carefully. If you don’t understand something, get independent advice before signing the lease agreement.
Disadvantages of leasing
It might not be cheaper in the long run
- Lease payments may add up to more than what the goods would usually cost to buy.
- You may also have to pay fees and charges during the lease or before the goods are delivered to you. These fees may include late payment fees and service charges.
You don't own the goods
- After paying to lease the goods, you don’t own the goods unless you are able to pay extra to buy them at the end of the lease.
- Check your lease or rental agreement before you sign it. The leasing contract may indicate how much you need to pay to buy out the goods at the end of the lease.
No cooling off period, heavy contract terms and high exit fees
- There is usually no cooling-off period on lease agreements.
- No matter what happens (even if the goods are stolen, damaged or destroyed) you’ll still need to make the lease payments.
- You may also have to buy insurance.
- Some companies will lock you into a contract and if you want to get out early, you’ll have to pay all the remaining lease payments anyway.
No warranty
There is no warranty on the goods other than the automatic consumer guarantees under Australian Consumer Law.
Your consumer rights
Learn more about contracts and your consumer rights.
Resolving issues
If you have a problem with a business that has leased you goods, follow our 3-step process to resolve the issue.
Making a complaint
When making a complaint, you should include:
- details of the issues you are experiencing
- copies of any correspondence that shows how you have tried to resolve the matter.
How Fair Trading will handle your complaint
Your complaint will be reviewed to determine the most appropriate resolution. This may include:
- providing you with information to help resolve your complaint
- recording the complaint issues to assist in future compliance programs, or
- contacting the other party to try and resolve the dispute.
You can lodge a complaint:
Online
If you cannot resolve your matter, submit your complaint by using our form.
By mail
Post your complaint form and documentation to:
NSW Fair Trading
PO Box 972
Parramatta NSW 2124
Ask a question
If you are unable to find the information you need, you can call us between 8:30am to 5pm on Monday to Friday. You can also use our form to make an enquiry.