Furniture Financing: Rent-to-Own

Many consumers do not have enough cash to buy furniture, appliances, or electronics. They finance these items through a rent-to-own transaction. You may be able to immediately use the item without a down payment or credit check. You then make the monthly payments to use the item. You do not have to keep the item unless you choose to after making all the payments.

You make rental payments on the item for a certain period of time until it is completely paid. The agreement is a “rental” agreement, even though it is much like a loan. If you total all the payments you will make during the life of the contract, it could far exceed the cost of the item. Also, there may be fees and finance charges that will further increase the cost of the item.

New York has passed some of the strongest laws in the country to protect consumers who rent-to-own. The rental contract must be in writing. The contract must include the name, address and phone number of the store. Also, it must state the length of the rental term, the amount of each payment, and the total number of payments. The length of the agreement cannot exceed four months. The total number of payments cannot exceed 2.25 times the cash price of the item. The contract must also disclose the total cost of the rental and all fees involved. It must include a statement of your rights and obligations under the contract.

Legal  Editors:  Mark  Grossman,  Esq.  and  Edward E. Klein,  Esq.,  May  2018

Changes may occur in this area of law. The information provided is brought to you as a public service with the help and assistance of volunteer legal editors, and is intended to help you better understand the law in general. It is not intended to be legal advice regarding your particular problem or to substitute for the advice of a lawyer.

Request A Lawyer

Back to Top

Our Lawyers

Our lawyers are screened and approved – they have all gone through an application and interview process. Each lawyer we recommend has been screened for significant experience, knowledge of ethics codes and rules, and law office practices, including customer service skills and handling of fees and billing.

Learn More About Our Lawyers

About Us

When you call us, you will be speaking with an attorney. One of our attorney referral counselors takes your call and talks with you about your legal question, or reviews your online referral request. There is no charge to speak with one of our attorney referral counselors -- we’re here to help.

Learn More About Us