Leasing Education | Wags Lending
A Bristlecone Holdings Company | Have a question?  +1 (844) 761-4950

So... What is a lease?

Our flexible lease program with purchase options helps you add a new furry friend to your family


Ok, pardon us for a moment so we can lay out the dynamics of our leases for you. Excuse the boring legal language…

The short and easy explanation: We have taken the auto-lease concept and have applied it to personal property so that more consumers can have access to pets and items that they love and need.

The structure of our lease is a Closed-End Consumer Lease.

A lease is an agreement between the owner of the product (us) and the customer where we own the product, but we give the customer the right to possess and use the property in exchange for monthly lease payments.  This point is critical – the monthly payment is the price the customer pays us to possess and use the property for that particular month.

Closed-end means that the leasing period is for a pre-determined number of months.  Our leases are closed-end because they are either 12 or 24 months. When the lease ends, the customer may not continue to lease the product month-to-month (which is an open-ended lease).   Rather, when the lease ends, the customer must return the product to us or pay us the fair-market value (the residual price) in order to purchase the product from us.


Fair-market value or residual price means the payment at the end of the lease that the customer must pay us in order to purchase title to the product, and thus become the owners of the product.  This price represents the price you could go out into the market and pay to purchase a similar product from a third party.  This price is critical because it is the amount the customer pays us to purchase the product from us.    If they do not pay this price, they must return the product to us because the lease is over and we are the owner of that product.

Important Background Information on our Lease

We are not in the business of selling products to customers on credit.  That is a loan.  We do not loan money at an interest rate to purchase products.

We are in the business of buying a product from a retailer and then leasing that product to the customer. We give the customer the option to purchase the product at the end of the lease at its fair market value.  Again, the monthly payment is what the customer pays to possess and use the product for that month.  The customer does not own the product unless they exercise the satisfaction guarantee, the early buyout option, or pay the fair-market value/residual payment at the end of the lease.  If the customer does not buy the product through one of these options, the lease will continue to the end of the term and the customer must return the product to us at that time.


Benefits of our Lease Structure

· Early purchase option available at any time during the term of the contract
· No obligation to purchase the leased property at end of lease
· Overall flexibility in purchase options/lease termination prior to end of lease term
· Down payment option (Capitalized Cost Reduction)
· Leases are not classified as “loans” and do not carry fluctuating interest rates
· Able to provide customers with financial products that they otherwise would not qualify for financing

Comparison Chart

Features Closed-End Lease Opened-End Lease Rent-To-Own
Credit Check Yes Varies No (can lead to higher default rates)
Payment Installment Monthly Monthly Weekly/Monthly Payments
Early Purchase Option Yes; anytime during term of contract Varies Yes; anytime during term of contract
Purchase Option at end of lease Lessee may exercise purchase option or return property Lessee must pay difference between residual and market value of property Yes; anytime during term of contract

Should you buy or lease? Knowing which is right for you.