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.
Consumer lease agreements are contracts. There is no ‘cooling off’ period for consumer leases which means that by entering into a consumer lease, you create legally enforceable obligations on yourself straight away. 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.
If you fail to make repayments the lessor must give you 30 days written notice of their intention to take possession of leased goods.1
This notice however is not required when:
If you signed a consumer lease and have not received the goods, you may terminate the lease. You may still be liable for fees/charges incurred before the termination.1
A consumer can terminate the lease provided they return back the goods and pay the amount outstanding under the lease.1
1. For more information, click here for our Consumer leases fact sheet
Four years ago Jessica got a new couch. She entered into a consumer lease to pay for it. The lease has now ended and she has been contacted by the leasing business to return the couch. Jessica knows that over the last four years she has paid the business much more than the couch was worth and wants to know whether she can keep it.
She calls CCLSWA for advice. She is advised that at the end of the consumer lease she does not own the couch. She can make an offer to purchase it, but she has no right to purchase or keep it.