Buying vs Renting a Shed – Which Should You Pick?
With the holidays coming up, people have three things on their minds: where are we going to put all this stuff, how are we going to afford it, and who’s drinking all the eggnog?
Maybe you’re hauling out the lights, wreathes, and plastic snowmen, and you feel swamped by décor. Maybe Santa’s going to bring the little ones more toys than the house can fit. A shed can be a perfect option to remedy the holiday clutter that only seems to grow each year. The problem? December is consistently America’s highest spending month, which can make purchasing a shed seem out of reach.
Luckily, BackYard Storage offers a variety of payment options to make that shed a little more attainable.
Below we outline the definitions of Lease Purchase and Finance, as well as the benefits of each.
What is Lease Purchase?
A Lease Purchase is a contractual agreement made at the time of the sale, wherein you make a specified monthly payment for an agreed upon length of time. Lease Purchase helps to spread out the cost of the building, making a large purchase more manageable. Additionally, Lease Purchase contracts are flexible; you can choose to pay your building off over a variety of term lengths with BackYard Storage. If you have some financial freedom, pick a shorter term. If you’re unsure about the future, opt for a more extended contract with lower monthly payments. Lease Purchase makes a difficult holiday purchase far more attainable.
Benefits
- No Credit Check – One of the best features of a Lease Purchase: you don’t have to worry about a credit check. Credit scores can hold a lot of people back from great products, services, and properties. With Lease Purchase, this barrier to entry is removed.
- Instant Approval – When you’re taking down all those decorations, you don’t want to wait another few weeks to put them away. Lease Purchase comes with instant approval, which means less waiting in limbo. Instant approval gets the shed to your home quicker, making your holidays easier.
- Turn the Building in at any Time – Life happens. Maybe you’re moving across states. Maybe you’ve fallen on hard financial times. Maybe you just don’t use the shed as much as expected. With Lease Purchase, you can turn in the building at any time with no consequence.
What is Financing?
Financing is another contractual agreement over a specified time period. You make monthly payments that go towards paying off your building and gaining ownership. The difference between this and Lease Purchase is that financing operates using interest. Just like standard loans, shed financing has interest. The bonus of financing with BackYard storage? Our program has great features that set it apart from other loans.
Benefits
- Fixed APR – Fixed APR is a huge benefit. This means that your interest rate will remain the same throughout your contract. While other loans might have fluctuating interest rates due to economic activity, fixed APR allows you to know exactly what you’ll be paying for the duration of your loan.
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Simple Interest – Most banks charge interest on both the principal and the accruing interest balance. That can be confusing and often leaves you wondering how much you’ll actually be paying in the long run. Instead of charging accruing interest, simple interest merely factors in your interest rate, principal balance, and the length of your contract.
Simple Interest = length of time x interest rate x principal
Simple interest makes financing more straightforward and more predictable. - Credit Building Opportunities – Financing also provides the opportunity to build credit. Consistent and timely payment while financing your shed has the added benefit of building your credit for the future.
With this new knowledge, a shed is more attainable than you thought! BackYard Storage has plenty of sheds that are compatible with all payment options to suit your holiday budget. Get in touch with our team today, and we’d be happy to help you find the perfect shed to fit your needs. Happy Holidays!
Browse our inventory to see all our available sheds, garages, and storage buildings, or come by one of our convenient locations to check out our high quality construction for yourself. You can even use our online configurator to see all the options available.