The Early Purchase Option (EPO): How to Save Money on Rent-to-Own

The early purchase option (EPO) is the single most effective way to reduce your rent-to-own costs. By buying the item before your lease term ends, you can save 40% to 60% of the total payments you would otherwise make. At least 38 states require RTO stores to disclose the EPO terms in writing, yet many consumers do not know it exists — or do not ask about it.

This guide from VRTO (Virtual Rent To Own) explains exactly what the EPO is, how savings are calculated, which buyout windows offer the best value, and how to build an EPO strategy before you sign any agreement.

What Is an Early Purchase Option?

An early purchase option lets you buy the rented item at any point during your lease and end the agreement immediately. Instead of making payments for the full 12 to 24 month term, you pay a lump sum (or a reduced total) and own the item outright. The EPO amount typically decreases over time — the earlier you buy, the less you have paid in total, but the more the buyout costs as a single payment. The later you buy, the lower the buyout but the more you have already paid.

Think of it this way: the EPO is a sliding scale between convenience (small weekly payments over a long period) and savings (one larger payment that ends the lease early).

The EPO exists because rent-to-own is a lease, not a loan. The 2024 CFPB v. Snap Finance ruling confirmed that RTO agreements are terminable leases — you can end the agreement at any time by returning the item or by exercising your early purchase option. This flexibility is one of the core advantages of the RTO model compared to traditional credit. For a full explanation of this legal distinction, see our guide on whether rent-to-own is a loan.

The 90-Day Same-as-Cash Option

The most valuable EPO window is the first 90 days. Many RTO stores offer a "90-day same as cash" or "90-day buyout" where you can purchase the item for the original cash price (or very close to it) within the first three months. If you use this option, you pay only what you would have paid at a regular retail store — effectively getting free delivery, setup, and the flexibility to return if needed, with little or no markup.

Here is a real-world example of how the 90-day option works:

As the table shows, using the 90-day option on a $600 item saves you $650 compared to paying over the full term. That is real money.

Use the VRTO payment calculator to estimate your total cost at different buyout points before you sign any agreement.

How EPO Is Calculated

EPO formulas vary by store and state, but according to APRO, the most common approaches are:

• Cash price minus payments applied — the buyout equals the original cash price minus a percentage of payments already made (typically 50% to 100% of payments are credited toward the purchase price)
• Declining balance — the buyout amount decreases on a set schedule, usually disclosed at the time of signing
• Fixed schedule — specific buyout amounts listed for each month of the agreement (e.g., month 1 = $550, month 2 = $500, month 3 = $450, and so on)

The key question to ask is: how much of each payment is credited toward the purchase price? If 100% of your weekly payments count toward the buyout, the math works in your favor much faster than if only 50% is credited.

Understanding the Payment Credit Percentage

This single number — the percentage of each payment credited toward ownership — is arguably the most important detail in any RTO agreement. Here is how it changes your total cost on a $600 item with $20/week payments:

• 100% credit: After 6 months ($520 paid), your buyout is $600 - $520 = $80. Total cost: $600.
• 75% credit: After 6 months ($520 paid), your credited amount is $390. Buyout is $600 - $390 = $210. Total cost: $730.
• 50% credit: After 6 months ($520 paid), your credited amount is $260. Buyout is $600 - $260 = $340. Total cost: $860.

The difference between 100% and 50% credit on the same item is $260 — a significant amount. Always ask for the credit percentage in writing before you sign.

State Laws Requiring EPO Disclosure

At least 38 states require RTO stores to disclose the early purchase option in the written agreement. According to the FTC, these disclosure requirements typically include:

• The fact that an early purchase option exists
• How the buyout amount is calculated
• A specific buyout price or formula for each payment period
• Whether payments already made are credited toward the purchase price

Even in states that do not mandate disclosure, most stores offer an EPO because it benefits both parties — the consumer saves money, and the store receives a lump-sum payment rather than taking on the risk of a long-term agreement where the customer might return the item.

Your state's RTO statute may include specific EPO provisions that stores must follow. Check our state-by-state consumer rights guide for details on the protections available where you live. You can also browse the VRTO state directory for state-specific RTO information.

Why EPO Matters Most for Electronics

Electronics depreciate faster than any other RTO category. A $500 TV purchased new today might be worth $300 in 18 months when newer models arrive. If you rent that TV for the full 18-month term at a 2x markup, you will pay $1,000 for an item worth $300. Using the 90-day EPO, you pay $500 for the same TV while it is still worth close to retail price.

The depreciation math makes EPO especially valuable for:

• Televisions — new models release annually, pushing older models down in value
• Laptops and computers — technology advances rapidly; an 18-month-old laptop is significantly behind current specs
• Smartphones — new flagship models every year; resale value drops sharply after 12 months
• Gaming consoles — new generations or revisions can make older hardware less desirable

For furniture and appliances, the depreciation curve is much gentler, so the urgency of using EPO is lower (though the savings are still significant). The typical total RTO cost of 1.5x to 2.5x the retail price makes EPO worthwhile regardless of product category.

Which Companies Offer the Best EPO Terms?

EPO terms vary significantly across providers. While specific terms change and vary by location, here are general patterns across major RTO companies:

• 90-day same-as-cash programs — most major RTO chains offer some version of this, but the exact terms differ. Some credit 100% of payments toward the cash price within 90 days; others charge a small processing fee.
• Traditional stores vs. virtual providers — traditional stores like Rent-A-Center and Aaron's typically have clear, store-level EPO policies. Virtual providers (Progressive Leasing, Acima, Snap Finance) may vary by retail partner.
• Independent stores — locally owned RTO stores sometimes offer the most flexible EPO terms because they can negotiate directly with you. However, terms are less standardized.

The best approach is to compare EPO terms from multiple stores in your area before committing. Use the VRTO company directory to find providers near you, and ask each one specifically about their 90-day, 6-month, and ongoing EPO terms.

EPO Negotiation Tips

While EPO terms are often set by company policy, there is sometimes room to negotiate — especially at independent stores. Here are strategies that can work:

1. Ask if the payment credit percentage can be increased. If a store credits only 50% of payments toward the buyout, ask if they can increase it to 75% or 100%. The worst they can say is no.
2. Request the EPO schedule in writing before signing. This gives you specific buyout amounts for 30, 60, 90, and 180 days. If the store will not provide this, consider it a red flag.
3. Mention competitor terms. If another store in the area offers a 90-day same-as-cash option and this one does not, say so. Stores are competitive about EPO terms.
4. Ask about reduced buyout amounts. Some stores will lower the EPO amount if you have a strong payment history. After 3 or 4 months of on-time payments, ask if the buyout can be adjusted.
5. Time your buyout around promotions. Some stores run EPO promotions around tax season (February through April), when many consumers use refunds to buy out their agreements.

Three Questions to Always Ask Before Signing

The CFPB and FTC both recommend asking these questions before entering any rent-to-own agreement. Make sure you get answers in writing:

1. "What is the cash price of this item?" — this is the price you would pay to buy it outright today. Everything else is calculated from this number.
2. "What is the total of all payments if I rent to completion?" — this is the maximum you could pay. Compare it to the cash price to understand the markup.
3. "What are the early purchase option terms?" — specifically ask for the 90-day buyout price, the 6-month buyout price, and how payments are credited toward the purchase.

If a store cannot or will not answer these three questions clearly, consider that a red flag and look elsewhere.

How to Decide If EPO Makes Sense for You

The EPO is not always the right choice. Here is a simple framework:

• Use the 90-day EPO if: you expect to have the cash within three months (tax refund, bonus, savings). You get all the RTO benefits (no credit check, free delivery, maintenance coverage) at roughly the retail price.
• Use a mid-term EPO (3-6 months) if: you can set aside extra money each month but cannot pay the full buyout immediately. You will pay more than retail but significantly less than the full term.
• Continue the full agreement if: you genuinely need the flexibility of small weekly payments and the option to return the item. The full-term cost is higher, but the weekly affordability and return flexibility have real value.

Remember: approximately 1 in 27 U.S. households uses RTO each year (APRO). Many of these consumers are in the "full agreement" category — they value the weekly affordability and the flexibility to return. There is no wrong answer; the right choice depends on your financial situation.

EPO Strategy: Plan Before You Sign

The best EPO strategy starts before you walk into the store. Here is a step-by-step approach:

1. Check the retail price first — look up the item on Amazon, Walmart, or Best Buy to know the market price
2. Use the VRTO payment calculator to estimate your total RTO cost and compare it to the cash price
3. Ask for the EPO schedule in writing — get specific buyout amounts for 30, 60, 90, and 180 days
4. Set a calendar reminder — mark the 90-day and 6-month dates so you do not miss the best buyout windows
5. Open a savings account — set aside money each week toward the buyout, separate from your regular payment

Compare stores near you using the VRTO store directory — EPO terms can vary significantly between providers, and a few percentage points on the buyout calculation can save you hundreds of dollars.

The Bottom Line

The early purchase option turns rent-to-own from an expensive long-term commitment into a flexible short-term arrangement that can rival retail pricing. If you are considering RTO, build your EPO plan before you sign. Ask the three questions. Get the terms in writing. Set your reminders. The stores that offer the best EPO terms are the ones that deserve your business.

For a complete overview of how rent-to-own works and what it costs, read our complete guide to rent-to-own in America. And to understand the full cost picture, see our real cost of rent-to-own breakdown.

Frequently Asked Questions