Consumer leases

What is a consumer lease?

A consumer lease lets you hire an item (for example, a refrigerator or a computer) for a period of time. It is a contract between you (the lessee) and the hirer (the lessor) which allows you to pay to use the item for a certain amount of time rather than buying it outright. The item remains the property of the lessor.

If you’re thinking about entering into a consumer lease, there are a few important things you should know:

  • Consumer leases can be VERY expensive
    • Often, the total of the lease payments add up to more than the cash price of the goods. There are often also other fees and charges included in the agreement.
      • A 2015 ASIC report found people can be charged up to 884% in interest under a consumer lease.
  • A consumer lease is a contract
    • Consumer lease agreements are contracts. That means that by entering into a consumer lease, you create legally enforceable obligations on yourself. Make sure you read the contract carefully. If you’re not 100% sure what you’re agreeing to or you’re not sure whether it’s a good idea, seek legal advice before you sign it.

For more information, click here for our  Consumer leases fact sheet

Still have some questions? Call our advice line on (08) 9221 7066