Helps you work out:
- if it is better to rent, buy or borrow electrical goods or furniture
- the total cost of renting (consumer lease)
- what other options are available to you
While there may be benefits to renting, find out:
- what you will end up paying in total (it could be more than you think)
- if you will own the item at the end of the term
- if the product is new or pre-used
- if there are any termination/cancellation fees if you break the contract early
- if you are paying more for insurance, a warranty or a damage liability reduction product
Use this calculator, ask your provider and check the contract to find the answers.
Other ways to get the item
- Pay it off on lay-by.
- Talk to Centrelink about an advance on your income support payment.
- Find out if you can get a no or low interest loan or call 13 NILS (13 6457).
- Look for the same item on an interest-free deal.
- See mobile phone deals and plans for tips on how to get cheap phone deals.
- Get urgent help with money.
Disclaimer and assumptions
It is an estimate only. Results will depend on the accuracy of your inputs.
- Fees: this calculator does not include additional fees, such as late payment fees
- Other fees: if you choose to purchase damage liability reduction (insurance) you will need to add this to the cost, unless it is included in your regular rental payments
- Delivery: no allowance has been made for delivery fees or any other upfront costs
- Rent period: we assume that you return the goods at the end of the lease period
- Purchase option: we have not taken into account any amount to purchase the item at the end of the rental period (you may have this option, but this is not always possible)
FAQs - frequently asked questions
Q: I am renting, will I own it at the end of the contract?
A: No, you don't own the item at the end of the lease period. It remains the lease provider's property.
Depending on the terms of your agreement, you may:
- Return the item (in good order) with no further payments needed.
- Make an offer to purchase the goods, which may involve paying an extra amount of money (but the lease provider can refuse to sell them to you).
- Upgrade to a new model after returning the old, and sign up for a new lease agreement (which may be at a higher rate than before).
- Once the rental period ends, lease payments stop — unless you agree to enter into a new lease. If amounts continue to be deducted without your agreement, contact the lease provider immediately.
Q: What happens if I want to terminate a rental (consumer lease) agreement contract early?
A: You may be asked to pay an early termination fee. This could be as high as 95% of the outstanding amount. If you are ending your lease early because you can no longer afford the repayments, you may be eligible to apply for a hardship variation. Contact the lease provider to discuss this. See managing debt for help.
Q: What if I want to give the goods back?
A: Speak to the lease provider about the process for returning goods. They may ask you to return the goods to their head office or to one of their branches. Or they may be entitled to charge you a fee for collecting the item. If you are ending your lease early, you may also be charged an early termination fee. This could be as high as 95% of the outstanding amount.
Q: What happens if I damage the goods I lease?
A: This depends on the terms of your rental contract. Generally, you are responsible for the cost of any repairs resulting from damage caused by you. Speak to the lease provider about how to repair goods — there may be rules that say who is authorised to make repairs. If you have home contents insurance you may be able to make a claim under that policy.
Q: Does the rental company have to fix the goods if they are faulty?
A: The law for faulty goods is the same whether you are leasing or have bought the goods. If goods are faulty and do not meet minimum standards, the law states you are entitled to a refund, or have them repaired or replaced. Ask the lease provider to arrange this.
Q: What if I am unhappy with the service I am receiving?
A: If you are not happy with the service you are receiving, or have any other issues with the lease provider, you can complain. Contact the lease provider to explain the problem and how you'd like it fixed. In many cases a simple phone call, email or visit is all that is needed. If the problem isn't fixed, make a formal complaint to the business in writing — see how to complain.