Lease-to-Own

Pay As You Go

Q: What is a lease-to-own transaction?

A: If you’ve applied with American First Finance and received approval for a lease-to-own payment solution, American First Finance has purchased the merchandise and will lease it to you, charging you rental payments in accordance with your agreement. While you take the merchandise home, we own the merchandise until you purchase it from us by exercising one of three options: 1. The Early Buyout Option; 2. The Early Purchase Option; 3. Pay over the entire term of the agreement.

 

Q: What is an Early Buyout Option on a lease-to-own account?

A: The Early Buyout Option is an option that allows you to own the merchandise earlier.

Within the Early Buyout Option, you will be responsible for the cash price, including sales tax, an Early Buyout Option fee, any applicable fees such as Nonsufficient Funds (NSF) fees, late fees, and Liability Damage Waiver fees (LDW), for consumers that have opted for that waiver at the beginning for their lease. Leasing fees are discounted when you successfully exercise the Early Buyout Option.

Your exact Early Buyout Option period is provided in your agreement, but you may also contact American First Finance, and one of our representatives can provide this information to you. You are not obligated to exercise the Early Buyout Option—it is completely optional.

 

Q: What is an Early Purchase Option on lease-to-own accounts?

A: If you have a lease-to-own agreement but were not able to pay off your account within the Early Buyout Option period, you can still save money on leasing fees by exercising the Early Purchase Option.

The Early Purchase Option is an opportunity described in your agreement to own your merchandise by paying off your full remaining balance, including the cash price of the merchandise, sales tax, leasing fees, and other applicable fees (e.g., Late fees, Liability Damage Waiver (LDW) fees if LDW coverage was selected, and Nonsufficient Funds (NSF) fees) before the end of your agreement term.

You may exercise the Early Purchase Option after the Early Buyout Option ends and before the end of your agreement term. Refer to your agreement for the exact number of days of the Early Buyout Option period.

Remember that an Early Purchase Option is not the same thing as an Early Buyout Option.

 

Q: Will scheduled payments or automatic payments pay off the Early Buyout Option?

A: No. Since your regularly-scheduled payments are set to pay the Total Cost of Ownership over the full term of your agreement, which in the earliest cases could be a 6-month term, exercising the Early Buyout Option in a shorter timeframe requires you to make higher payments than the regularly-scheduled payments to pay the full Early Buyout Option amount, which includes the cash price of the merchandise, sales tax, the Early Buyout Option fee, and applicable fees (e.g., Late Fees, Liability Damage Waiver (LDW) fees, if LDW coverage was selected, and NSF fees).

Refer to your agreement for the exact number of days of the Early Buyout Option period, and other important details. As a note, you can set up automatic payments that can allow you to pay off at the Early Buyout rate.

 

Q: Do I own the merchandise starting on day one (1) of my lease-to-own agreement?

A: You may take advantage of the Early Buyout Option depending on your agreement or exercise the Early Purchase Option outlined in your agreement to own your merchandise earlier. Exercising either the Early Buyout Option or the Early Purchase Option will enable you to
purchase and own the merchandise in your possession instead of just renting to own.

 

Q: As a lease-to-own customer, what are my repayment options with AFF?

A: There are three possible options to own the merchandise on a lease-to-own account with AFF.

You may take advantage of the Early Buyout Option, or after the Early Buyout Option period has passed and before the end of your agreement, you may exercise the Early Purchase Option.

Exercising either the Early Buyout Option or the Early Purchase Option will enable you to own the merchandise in your possession instead of just renting it. You may also own the merchandise by paying until the end of your agreement term.

Here’s an example of how much it would cost to own your lease-to-own merchandise by exercising the Early Buyout Option:

To own merchandise with a cash price of $1,000, you may exercise the Early Buyout Option by paying off the sum of the $1,000 cash price, plus sales tax, an Early Buyout Option fee, and other applicable fees (e.g., Liability Damage Waiver (LDW) fees, late fees, and Nonsufficient Funds (NSF) fees).

Refer to your agreement for the exact number of days of the Early Buyout Option period and other important details.

 

Q: I’m finished using my merchandise and do not want to own it. How do I return it?

A: We facilitate rentals of new, high-quality merchandise. If you no longer choose to use or possess the merchandise and want to avoid future payments, you can terminate your lease at any time by notifying American First Finance. Please contact American First Finance if you would like to discuss a return or surrender of your leased merchandise.

 

Q: Is there a “same as cash” option

A: No. Products serviced by American First Finance are competitively priced. However, your product will cost more than the retail price or cash price since fees and charges apply in accordance with your agreement.

For options to reduce your total costs over time, we offer an Early Buyout Option that allows customers to own their items early. It’s found in your agreement.

 

Q: What cost(s) are included in my recurring lease-to-own payment?

A: Your regularly scheduled lease-to-own payment is called a “rental renewal payment” and includes the applicable leasing fees, cash price, sales tax, and a Liability Damage Waiver (LDW) fee if LDW coverage for the merchandise was selected.

If you paid a security deposit, your total rental renewal payments would be decreased by the amount of your security deposit, distributed across the total number of payments indicated in your contract.

To determine that payment amount, divide your security deposit by the number of payments in your arrangement. Subtract the quotient from the original rental renewal payment amount to see your adjusted payment value.

Applicable late fees and Nonsufficient Funds (NSF) fees will be added to your rental renewal payment.

All applicable fees and charges are disclosed in your agreement. We encourage you to carefully
read and understand the agreement before signing and to re-review your agreement if you have questions at any time. We’re also here to help if you have any questions.

 

Q: Does a lease-to-own transaction have interest?

A: No, but lease-to-own transactions have notable leasing fees that are comparable in cost to interest-bearing products. Lease-to-own transactions do not have an interest rate because they are not loans or a type of credit. However, there are comparable costs that are passed to the customer.

 

Q: What does lease termination mean?

A: As stated in your lease agreement with AFF, AFF may terminate your lease agreement if you become delinquent. This allows AFF to be able to collect late leasing fees. If you become delinquent on your lease, you can always reinstate the lease agreement by bringing your lease current.

 

Q: Does American First Finance report my lease-to-own payments to credit bureaus?

A: Effective January 1, 2024, AFF will no longer report to the credit bureaus for any lease-to-own accounts opened through AFF on or after this date. AFF will continue to report to the following credit bureaus TransUnion, Data X, and Clarity Services Inc for any lease-to-own accounts opened before this day that were previously reported on. This change does not impact AZ, CA, and FL, given that credit reporting for lease-to-own accounts originated in these states has been previously discontinued.

*Approval is possible without a credit score, but credit history may be checked.