- An arrangement where one makes periodic rental payments towards the eventual goal of purchasing an asset. Most often used to purchase consumer goods, rent-to-own arrangements can also be used to purchase real estate. Also known as a "rental purchase."
Related Terms and Acronyms
- Lease (lse) — Abbreviation,
- A written agreement in which the property owner allows a tenant to use property in exchange for rent, and for a specified period. Or, a written agreement in which a car dealer allows a consumer to use a vehicle in exchange for payments for a specified period.
- Purchase Option — Definition,
- An agreement where a portion of monthly rent can be credited toward the purchase of a property.
- The portion of a vehicle lease that determines how much a lessee pays the lessor at the end of the lease to buy the vehicle. The price is usually the residual value.
- Rent — Definition,
- When one party pays another for the use of an asset, service or property.
- Rental Agreement (RA) — Acronym, Important,
- A document that states the terms and conditions for tenancy of a dwelling.
- Seller Carryback — Definition,
- A form of financing in which the seller of a property accepts a down payment and agrees to accept payments until the property is paid for.