Best Buy Progressive Leasing is one of the financing options for its products but you might pay more if you do not understand it.
When it comes to buy now pay later methods on Best Buy, you have options that include its credit card, pay in 4 installments, and the lease-to-own option.
While Zip powers its conventional pay-in-4 financing, its lease program relies on the integration with Progressive Leasing which you can select at checkout.
Progressive Leasing
Max. Amount
$4,000
Credit Check
Soft
Type
Lease-to-Own
Tip: When you opt for the Best Buy Progressive Leasing option, you are entering a lease-to-own contract and you can become the full owner of the product in 12 months after completing the payments.
While you can enjoy no interest if paid in full within 90 days, the price could double if you extend beyond three months causing you to pay more than twice the original costs of the product. Use this if you are convinced about repaying in full within 90 days.
When it comes to buy now pay later for electronics, there are a few places you can access more products than when shopping on the Best Buy website or through one of its retail outlets.
Interestingly, the platform has several financing options you can select from including its Citi Flex Pay-enabled credit card, the Zip option, and the lease-to-own powered by Progressive Leasing.
With high purchasing power and popularity for allowing buy now pay later with no credit check as a primary determinant, the Best Buy Progressive Leasing option enjoys a good standing, especially among those working on improving their credit scores before they can access other alternatives.
While it could appear golden at the beginning, it can be a little confusing once you start to understand the terms that come with this financing option.
The good side is that you can avoid paying interest but that is if you can clear the payment within the first three months of your lease contract.
But what happens if life happens and the payment extends beyond the no-interest period?
Best Buy Progressive Leasing Contract Structure
To understand the financing option and its applicable terms, having a better view of the contract will let you know some of the important things in it.
Below is a sample lease-to-own estimate taken from the Best Buy website. You can use the Progressive Leasing calculator to estimate the cost of what you want to purchase.
If you look at the image closely, you will notice that the 12-month lease-to-own total is more than double the price of the product.
To better understand this, below explains each part of the contract and how they work. If you can, open the Progressive Leasing calculator to see the estimation live in action.
Cash Price
In the Best Buy Progressive Leasing agreement, the cash price is the total amount you would pay if you were purchasing the item outright with cash, rather than entering into a lease.
This price includes the full retail cost of the product, along with any applicable taxes, fees, and interest associated with an outright purchase.
For instance; if a smartphone you want to buy costs just $500 if you were to pay upfront, that is the cash price (with any additional tax and fees that may be applied).
Repayment Period
The repayment period is the duration during which you are obligated to make regular payments to Progressive Leasing
These payments, often referred to as lease payments, are a crucial part of the contract.
The repayment period is specified in terms of months, outlining the length of time you commit to making these regular payments in varying frequencies like weekly, bi-weekly, or monthly.
Residence State
In your Best Buy Progressive Leasing contract, the residence state typically refers to your legal domicile or primary residence.
It is important to specify the residence state in the lease agreement because it determines which state’s laws will govern the terms of the lease.
This is crucial for legal matters and jurisdiction, especially in case of disputes or legal actions related to the lease.
90-Day (3 Months, Same as Cash in CA)
In your lease agreement, a “90-Day Early Purchase Option” means that you have the opportunity to buy the leased item before the scheduled end of the lease term, specifically within 90 days.
This option allows you to own the item outright by purchasing within the specified timeframe.
During these 90 days, you have the right to notify Progressive Leasing if you decide to exercise the early purchase option.
The lease agreement will detail the purchase price, which is the amount you must pay to acquire ownership before the original lease term concludes.
This is the best time to pay off the costs as it is when you enjoy the most savings when you use the Best Buy Progressive Leasing option for a device purchase.
If you live in California, there is the ‘same as cash’ benefit and about 2 days extra (as it is exactly three months for CA residents).
‘Same as cash’ in the contract typically refers to a financing option that allows you to purchase an item and pay for it without incurring any interest or additional charges during a specified period.
It is essentially a way to defer payments without incurring finance charges for a certain duration.
If your provided address is in CA and you paid the initial deposit during the signing of the contract, your 90-day EPO will be the cost price of the item – the initial deposit.
For users outside CA, Progressive Leasing usually applies the ‘cost price of the item + the initial deposit’ formula.
For example, a microwave of $500 with an initial deposit of $59.
- 90-Day EPO in CA: $441
- 90-Day EPO Non CA: $559
Early Purchase
This is the second alternative period when you can save on rental fees by paying off the costs.
Unlike the 90-day EPO, you will have to pay what we call lease-to-own cost in addition to the cash price.
At this stage, you might pay more than 65% extra to the original product cost depending on the time you exercise this option during the contract.
An item that costs $500 could rise to or more than $825 when using the early purchase option after the initial three months.
Lease-to-own Cost
The “lease-to-own cost” in the Best Buy Progressive Leasing contract refers to the total amount of money that you, as the lessee, will pay as the rental costs over the lease term if you decide to exercise the option to purchase the leased item and own it outright.
You can look at it as the rent fee during the period of your lease.
12-month Lease-to-own Total
This part gives you an idea of how much total you will need to pay to own the product if you continue until the last (12th) month.
It is simply the addition of the lease to own costs and the cash price.
For an item of $500, if the cost of the lease is $ 625, you will pay $500+$625 (which is $1,125) to own it.
How Best Buy Progressive Leasing Works
In a simple term, you get a product you want from Best Buy after your Progressive Leasing application is approved which you are expected to pay for on installment as a lease until you use the early purchase option or complete 12 months of payments for full ownership.
Below is what typically happens when using the Best Buy Progressive Leasing product financing option:
Application Stage
In this phase, you are required to provide some details to Progressive Leasing through the online form.
You will see this when you are about to checkout on the Best Buy website and if you are using this financing option in-store, there is usually an attendant that will guide you on how to complete this part.
Keep your smartphone active if you are doing this at the store as you will need to fill out the form providing details that include your:
- Name
- Social Security Number
- Address
- Contact details
You will receive an OTP to confirm authenticity which you will need to input on the validation page to continue the process.
Once everything is provided, you will then send it to Progressive Leasing by clicking the submit button.
Lease Decision Stage
This phase is automated based on the information you provided at stage one and usually takes a few minutes for a decision to be made regarding your application.
Some of the things that happen here include:
- Soft credit inquiry: also known as a soft pull or soft inquiry, occurs when Progressive Leasing checks your credit report for informational purposes without impacting your credit score.
- Purchasing power determination: based on the result of the soft inquiry, it will be determined if you will be able to repay the lease costs over the contract period
- Approval/Rejection: based on its determinant factors, a decision will be reached. Either you are allowed to get the product or be rejected
Note that the Best Buy Progressive Leasing option does not use your credit score as the basis for approval as you can still be eligible even with a poor credit standing based on other factors (as considered by Progressive Leasing) through its inquiry using credit agencies like FactorTrust.
Product Receipt/Rent Stage
Once your application is approved, you will be given the device (which is not yours) after the initial payment is successful.
At this stage, Progressive Leasing bought the item from Best Buy based on your request and decided to rent it out to you.
What this means is that the lessor (Progressive Leasing) has the power to take it back from you at any point within the period of the contract.
It is similar to living in a rented apartment where the landlord or property owner can ask you to leave anytime.
Repayment Stage
Once you have entered into the contract, it is now your turn to start repaying the rental costs.
The fee charged here goes to Progressive Leasing and not Best Buy because the full product cost was paid to Best Buy by Progressive before you received the item.
Depending on your preference at the application stage, you are expected to pay back periodically usually weekly, bi-weekly, or monthly.
90-Day EPO Stage
This is the phase where you do not pay more than the original product cost (same as cash in CA) if decide to clear all the payments.
You do not have to wait until the third month to utilize this option, it can happen anytime within the first 90 days.
Using this, you will save yourself a lot that could go into continuous rental fee payments.
This is the best time to pay the price if you have the funds to make the device 100% yours.
You can use this by logging into the Progressive Leasing app or simply giving their support team a call to receive instructions on how to go about it.
Early Purchase Stage
The second best time to close out the Best Buy Progressive Leasing contract is this phase if you missed the 90-day option.
While this will not save you so much as the first option, there is more to keep when you can pay the full cost of ownership at this stage.
Depending on the time you use this option, you can save anywhere between 13% to 35% on rental costs.
Full Ownership Stage
This is the last part of the contract which is typically the 12th month.
If you add all the payments you have made since the beginning of the lease at this stage, you will notice that the total is more than double the original price of the product.
You probably will not know as the monthly payments seem small until you add them all up together to see the full picture.
If you reach this stage without any default in repayment, you can then keep the product as the contract will close out automatically.
Alternatives to Best Buy Progressive Leasing Option
Best Buy Progressive Leasing is a good option if you can pay off the full item’s cost within the first 90 days as that period comes with no interest.
However, you can consider the below alternatives if you are unsure of closing out the contract within the first three months:
Zip
Max. Amount
$1,500*
Credit Check
Soft
Tip: Zip is directly available when shopping on the Best Buy website which you can use to spread the cost of your electronic purchases.
If there is one to go with regarding the best alternatives for the Best Buy Progressive Leasing payment plan option then, it has to be Zip.
Available on the payment page when you are ready to checkout, this option grants you at least $1,000 which you can use to handle your orders on the website.
There are two forms of financing offered when paying with Zip on the website, the regular pay-in-4 and the Zip Money.
While the former has a maximum cart value limit of $1,000, the Zip Money option allows you to access up to $5,000.
The Zip Money is for high-ticket devices and interestingly, it also comes with interest-free financing for up to 60 months, making it an amazing choice over the Best Buy Progressive Leasing method.
Best Buy Credit Card
Max. Amount
Varies
Credit Check
Yes
Tip: The Best Buy credit card is another alternative to consider but it requires a good credit standing hence, opt for this if your credit score is anywhere from 650. It is also directly available at checkout which you can apply to use for payments.
There are a few credit cards with buy now pay later as one of their add-on benefits and that of Best Buy also has this feature.
Powered by Citi, this comes with Flex Pay which will allow you to spread the cost of your purchases at Best Buy without impacting much of your credit line, enabling you to use it for more expenses.
You can use this option to defer payment for up to 24 months with an APR ranging from 19.24% to 29.24% depending on factors determined by Citi.
At that rate, it is much better than the Best Buy Progressive Leasing option if you are fortunate enough to be approved for the card.
Interestingly, you can avoid paying the interest if you can clear your purchase balance in full before your statement due date.
Sezzle
Max. Amount
$1,500
Credit Check
Soft
Tip: Sezzle is not directly available to use when shopping on the Best Buy website but you can utilize it using its virtual card or shopping through the app.
Sezzle is one of the top buy now pay later services and is popular among those who want to repair their bad credit scores as it reports activities to the major bureaus.
The platform employs alternative channels that you can use to purchase your desired electronics and appliances at Best Buy as you cannot use it directly on the checkout page.
There are three ways you can utilize the Sezzle platform to spread the cost of your purchases when shopping at Best Buy.
It provides two forms of buy now pay later virtual cards, both are compatible with Best Buy as the store is one of its selected retailers where you can use the service to pay-in-4.
However, there is more with the Anywhere card which comes with its subscription plan.
With this card, you can buy at Best Buy online as well as at its physical stores and pay with your Sezzle purchasing power by connecting it to one of the top digital payment wallets.
There is the other option which requires you to shop through the Sezzle app by searching for Best Buy within its retailers list.
Klarna
Max. Amount
Varies
Credit Check
Soft
Tip: With multiple channels provided to enable you to buy what you need at Best Buy and spread the payments, Klarna is one of the top options to consider.
While Best Buy is not directly one of the online stores that accept Klarna, you can still use the platform to shop for electronics on payment plans.
Similarly to the Zip option, you can also use Klarna for long-term financing with its APR better when compared with the Best Buy Progressive Leasing financing method.
While its single-use virtual card can be generated anytime you want to make a payment, there is a better version of the Klarna card which can also be used for in-store purchases.
Just like every split payment provider, its Pay-in-4 which is a six-week financing term has no interest but if what you want to buy is not a value you can pay back within that timeframe, there is a long-term financing option.
To enjoy its service when you visit the Best Buy outlet, you might want to consider the physical version of its payment card which gives you flexibility and convenience as you do not have to bother about pre-planning your purchases.
Nonetheless, the one-time card works fine and you can connect it to any digital wallet for in-store purchases.
There is also an in-app feature that allows you to shop Best Buy directly when you are logged into your Klarna dashboard.
This option is very convenient as you only need to shop as you would normally do on the Best Buy website and once you are at checkout, you will click the ‘Pay with Klarna’ button on your app to complete the purchase.
There is also the browser extension which you can install for the Chrome browser and utilize when you visit the Best Buy website.
Affirm
Max. Amount
$20,000
Credit Check
Soft
Tip: With Affirm, you will work with alternative methods to utilize its financing service when shopping at Best Buy online and in-store.
Affirm might be one of the popular pay-in-4 installment options on Amazon, Walmart, and other top retailers but Best Buy does not have it integrated for financing.
Despite the non-existence of direct integration, you can still use Affirm to make payments for your purchases instead of the Best Buy Progressive Leasing option, be it on the website or when you walk into one of its retail outlets.
Its number of available payment methods is similar to that of Klarna, including the ability to shop in-app, use the virtual card, or go with a browser extension.
The Affirm card works quite differently from others and somewhat has a similar flow as the Zilch payment card.
By default, it is a debit card that has the ability to directly charge your bank account anytime you use it for payment.
It also doubles as a spread payment card but you will need to pre-plan the purchase by logging into your Affirm app and setting it up for payment.
If during your pre-plan set-up, you decide to use long-term financing, the APR will be between 0–36% which is still better compared to using the high rental cost that comes with the Best Buy Progressive Leasing option.
Best Buy Progressive Leasing Frequently Asked Questions
Below are some frequently asked questions about utilizing the Best Buy Progressive Leasing option for financing:
What can I buy at Best Buy with Progressive Leasing?
You can buy almost everything except gift cards as Best Buy fits into a prime category of Progressive Leasing partners.
The specific items you can lease through Progressive Leasing at Best Buy can include:
1. Electronics: This may include items like televisions, audio equipment, cameras, and gaming consoles.
2. Appliances: Household appliances such as refrigerators, washing machines, dryers, and ovens might be available for lease.
3. Computers and Laptops: Best Buy offers a range of computers, laptops, and accessories that may be eligible for leasing through Progressive.
4. Furniture: Some Best Buy locations offer furniture, and certain pieces may be available for lease through Progressive Leasing.
5. Smartphones and Accessories: Depending on the Best Buy location and its partnership with Progressive Leasing, you may be able to lease smartphones and accessories.
Note: eligible products are within the prices of $59 and $4,000.
Is it expensive to use Progressive Leasing for Best Buy?
This depends on when you pay back your lease costs. If you complete the payment within 90 days, it is not expensive as you would have paid a total of the original product cost.
However, if you go beyond the 90-day early purchase option period, the price of the item can be as high as double the original price of the item.
Does Best Buy Progressive Leasing affect credit score?
To approve you for a lease, only a soft credit check is conducted and this will not affect your credit bureau profile.
How can I contact Progressive Leasing?
To get in touch with the Progressive Leasing team regarding your Best Buy purchases, visit the support page and choose your preferred channel to reach them.
Opting for the Best Buy Progressive Leasing financing option is not a bad idea if you can utilize the 90-day early purchase offer.
However, if you are unsure about repaying in full within this timeframe, you should consider alternatives first and only come back to the lease-to-own option if you are unable to get financing from other sources.
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