Rental Buyout

Financing and Contract Terms - Consumer Protection pillar

Also known as: buyout, buy-out

The lump-sum amount required to terminate a rental contract and own the equipment outright. Often quoted on demand and can be lower than the contract's stated buyout schedule.

A rental buyout is the dollar amount that ends a rental contract and transfers equipment ownership to the homeowner. The contract's published buyout schedule is the maximum price; in practice rental companies often negotiate lower numbers, especially for older equipment or when threatened with a regulatory complaint. The break-even math is straightforward: at $55/month rental and $2,800 buyout, the buyout pays for itself in 51 months. Anything past that point is money the rental company would have collected indefinitely.

See the full Ontario HVAC and home energy glossary or browse the Consumer Protection pillar.