Consumer leases

Last updated: 17 September 2026

A consumer lease lets you rent a household item, such as a fridge, laptop or television, and pay for it over time.

How does a consumer lease work?

A consumer lease lets you rent an item, like a laptop, TV or fridge, for a set amount of time. You make regular rental payments, typically weekly or fortnightly, until the lease ends.  

The fortnightly rental payments usually look small, but they add up quickly. You'll pay more than the sale price of the item and, when the lease ends, you won't own it. 

The lease agreement will tell you what happens at the end of the lease. Generally, you can choose to: 

• Return the item in working order. You won't need to make any further payment. 
• If an option, make an offer to purchase the item or suggest someone else to gift it to. The lease provider will tell you how much more you need to pay to keep it.

There's usually no cooling-off period with a consumer lease. Read and understand the terms of your lease and total cost before you sign the contract.

Rent to buy is different

A rent to buy offer is different to a consumer lease.

With rent to buy, you rent an item for a period of time, such as three years. At the end of that period, you pay an agreed amount to buy it. You do not own the item until you've made all your payments.

Make sure to check whether you’re signing up for a consumer lease or a rent to buy agreement before you commit your money.

What does a consumer lease cost?

Consumer lease providers cannot require repayments of more than 10% of your after-tax income. 

However, there are other costs that aren’t included in that 10% cap and these can add up quickly.  Extra costs you may have to pay include:

Delivery fee	Depending on your location, you may have to pay a reasonable delivery fee for the item.
Dishonor fee	You're charged this if a lease provider is unable to process a payment. For example, if you don't have enough money in your account.
Costs for damaged or stolen items	If the item is damaged, you might have to pay to repair it. If stolen or lost, you could still have to pay all rental payments until the lease ends.
Termination fees or charges	If you end the lease early, you may have to pay an amount equal to all rental payments for the rest of the lease.
Insurance and warranties	You may be offered insurance or a warranty for an item you rent. These are optional. Before you buy, check what it covers and the costs. The item could already be covered under Australian consumer law. Visit the Australian Competition and Consumer Commission website to find out more.

Your lease provider must state in your lease agreement:

• an itemised list of each fee that could be charged
• the amount you have to pay at the end of your lease
• the base price of the item (usually the recommended retail price)
• the difference between the base price and the total amount payable in the lease

By law, every 12 months your lease provider must give you a statement showing the payments you've made. To help keep track of what you're paying, you can ask to receive the statement more often.

Ninety days before the end of your lease, your lease provider must give you a statement showing:

• the date your lease is due to end
• when, where and how you are to return the item you're leasing
• any fees or penalties you have to pay if you don't return the item by the due date
• if you are able to buy the item, and the cost to do this

Once the lease ends and you return the product, no further rental payments should be taken from your account.

You can use our rent v buy calculator to work out the total cost of renting and see what you can save by buying outright.

Alternatives to consumer leases

A consumer lease is designed for people who want to rent an item rather than buy it. 

If you want to own the item, there may be cheaper options to consider: 

• No Interest Loans – If you're on a low income, a No Interest Loan (NIL) can help you buy essential household items, with no interest and no fees.
• Centrelink advance payments - you may be able to get an advance payment of your Centrelink benefit.
• Lay-by - you pay off the item in a number of equal repayments. You can't take the item home straight away, but you won't pay any interest on it.
• Interest-free deals - take the item home now and pay it off over time.

Compare the total cost of each option before you decide. 

Use our savings goals calculator to work out how much you need to save regularly to reach your goal. 

Get help if you can’t make repayments 

If you're having trouble making lease repayments, contact the lease provider. You have the right to apply for a hardship variation to make your repayments more manageable. 

You can also talk to a financial counsellor, a free and confidential service to get your finances back on track. Call the National Debt Helpline on 1800 007 007. Monday to Friday, 9:30am to 4:30pm. Or live chat, Monday to Friday, 9:00am to 8:00pm.

Aboriginal and Torres Strait Islander people can call Mob Strong Debt Help on 1800 808 488. Monday to Friday, 9.30am to 4.30pm.