What an Okinus lease really costs

How the cost of a lease works

With a loan, cost is shown as an interest rate and an APR. A lease-purchase agreement has neither. Instead, Okinus buys the item from the retailer and leases it to you, and you pay a set amount each pay period until you own it or return it.

That means the cost of the lease is simple arithmetic:

The amount of each payment depends on the item’s cash price, how often you pay and the length of the lease. Okinus drafts payments automatically from your checking account on a schedule, and leases run for up to 24 months.

Sources: Okinus: Consumer FAQs; Okinus: How It Works

Where to find the numbers in your agreement

Before you sign, your lease agreement has to show what you will pay. Look for these figures, and ask the retailer or Okinus to point them out if you can’t find them:

• Cash price

  What the item would cost if you paid for it at the register today.

• Payment and schedule

  The amount of each payment, how often it’s drafted and how many there are.

• Total cost to own

  The total of all payments needed to own the item, and how it compares with the cash price.

• Early purchase terms

  How much it costs to buy the item before the last payment, and when you can do it.

When customers have complained to the Better Business Bureau about cost, Okinus’s public responses have pointed back to the cost disclosures in the signed lease. Reading that section before you sign is the single best way to avoid surprises.

Sources: Okinus: Legal: service agreement and terms; Okinus, Inc. business profile and complaints

A worked example

In this illustration, buying early saves about $810. The exact early purchase amount comes from Okinus and depends on your agreement and how much you’ve already paid.

Work out your own total

Enter the figures from your lease or quote. If you have an early purchase quote from Okinus, add it to compare the two totals.

Buying early is how most people cut the cost

Okinus offers early purchase options, but you are not enrolled in one automatically. To use one, contact Okinus and ask for your payoff amount. Its FAQ says early purchase can save you money compared with making every scheduled payment.

1. Find the early purchase terms in your lease agreement.
2. Call or chat with Okinus customer care and ask for your current early purchase amount.
3. Compare that amount with the payments you have left, using the calculator above.
4. If it’s lower, ask Okinus how to pay it and confirm in writing that you own the item.

Sources: Okinus: Consumer FAQs; Okinus: Legal: service agreement and terms; Financing: Okinus lease-to-own disclosures

Add-ons that change your payment

Two optional products can increase what you pay each period. Neither is required to get a lease.

• Loss Damage Waiver (LDW)

  Optional. Okinus says it is not insurance; it relieves you of some responsibility if the item is lost, stolen or damaged. If you choose it, its charge is part of your payments.

• Okinus Care Plus

  An optional plan with its own fee. Okinus says it is not offered in Rhode Island, Utah, Washington or California.

Ask the retailer to show your payment with and without each add-on before you sign. More detail: Care Plus and LDW explained.

Sources: Okinus: Loss Damage Waiver; Okinus: Care Plus

What the FTC found about rent-to-own costs

The Federal Trade Commission surveyed rent-to-own customers across the industry. The survey isn’t about Okinus specifically, but it is the best independent picture of how these agreements play out:

• 70% bought the item

  Most merchandise in the survey was eventually purchased by the customer, not returned.

• 75% were satisfied

  Most customers said they were satisfied with their rent-to-own experience.

The FTC also noted that buying through rent-to-own usually costs significantly more than paying the retail price. That is why comparing the total with the cash price matters.

Sources: Survey of Rent-to-Own Customers (FTC Bureau of Economics staff report); FTC testimony on the rent-to-own industry

Ways to keep the cost down

• Compare the total, not the payment. A small payment over many periods can add up to much more than the cash price.
• Plan an early purchase. Ask for the payoff amount as soon as you can afford it.
• Skip add-ons you don’t need. LDW and Care Plus are optional.
• Keep your account current. If you can’t keep paying, Okinus says you can return the item with no penalty while your account is current.
• Compare with other ways to pay. Saving up, a credit union loan or an installment loan with a clear APR may cost less. See how a lease compares with a loan.

Source: Okinus: Consumer FAQs

Common questions