Rent To Own shipping containers: Complete Guide [vs. Renting & Buying]

Rent-to-own shipping containers are becoming a popular financing option for those who prefer a lower upfront payment. But is it the right choice for you? In this blog, we’ll guide you through selecting the best financing option for your shipping needs and budget.

Deciding whether to buy or rent shipping containers can be challenging, especially if you’re unsure about your long-term needs. However, a rent-to-own container financing agreement might be the solution for you.

Keep reading to discover everything you need to know about this shipping container financing scheme and whether it suits you. 

But if budget is your main concern, then we have a solution with our online container marketplace where you can choose and negotiate what to pay for containers. Interested in purchasing containers at wholesale prices with 0% commission? 

Use our public search below to explore container offers at below-retail prices. These offers are negotiable, allowing you to maximize your savings! Check out the offers now.

What is the Rent To Own shipping containers model?

Rent to own (RTO) is a shipping container financing scheme that allows you to rent it with the option to purchase it at the end of the rental period. This scheme gives you immediate access to a container with payment spread out over time, appealing to those who prefer lower upfront costs and flexibility 

It seems convenient but it’s important to consider whether it truly offers the best value. 

Payment structure of RTO 

Rent-to-own shipping containers usually work in one of two ways:

Regular Rental Rate with Lump Sum Payment: You pay a standard rental rate, then a large final payment at the end to own the container.

Higher Payments That Accrue: You pay a higher rental rate, with a portion of each payment going towards the container’s purchase price, reducing the final cost when the lease ends.

When should you opt for Rent To Own containers

Now that you know how Rent To Own works, here are some situations when you should consider the Rent To Buy method.

You need long-term storage

Do you require the container for more than a year? You may end up accruing hefty interest with a standard rent agreement. Rent To Own shipping containers is the best option in this case. It ensures that the money you pay amounts to ownership at the end. So you can see each installment as an investment. It’s win-win!

You don’t have enough upfront cash

As a shipping container business owner, you need funds for critical business operations. Perhaps you don’t have enough cash to buy containers upfront but you’d still like to own them eventually. A Rent To Own agreement fits pretty well in such a scenario, as you won’t have to fork out all of the money at once.

You don’t want to risk it 

With rent-to-own, you have the chance to test the container condition and suitability before committing to a full purchase. If you find that it doesn’t meet your needs, you’re not locked into a long-term commitment.

What is the Rent To Own containers process?

The concept seems straightforward, however, the actual rent-to-own process has several steps:

– First things first, choose a container rental company based on your preferences, such as location, container type, leasing rates, and contract terms.

– Next, pick out a container that works best for you. It’s important to note that most RTO companies only offer standard sizes, such as 20ft, 40ft and 40ft HCs.

– The leasing company then runs a soft credit check and offers you different term options. Standard agreements are between 6 to 36 months.

– Based on your requirements and resources, you then select the appropriate terms  — agreed upon by both parties.

– Then, you sign an agreement with the leasing company to pay them a specific amount every month for the decided duration/term.

– At the end of the term, once you’ve paid off all of the installments, ownership is transferred to you.

It’s important to note that the terms and conditions of RTO agreements differ from company to company, so you’ll need to find the one that works best for you.

Rent to Own vs. Renting vs. Buying Shipping Containers 

Let’s help you decide which financing option is the right one for you. 

Rent to Own: Flexibility with ownership potential

As you’ve read above, this model allows you to use the container immediately without a large upfront investment. But there are several limitations:

– Higher Overall Cost: The total cost of the container can be higher than purchasing it outright due to interest and fees.

– Higher Interest Rates: Interest rates are typically higher compared to traditional financing options.

– No Equity: Monthly payments do not build equity until the container is fully paid off.

– Limited Customization: You cannot modify the container until you own it.

– Condition Responsibility: You’ll be responsible for maintaining the container condition throughout the rental period.

Renting: Lower payments, no ownership

Renting a shipping container generally comes with lower monthly payments compared to rent-to-own. However, this option doesn’t include ownership. When the lease ends, the container must be returned and you gain no equity in the asset.

Renting is ideal for those who need a temporary solution without the intention of long-term ownership or those looking to keep costs as low as possible.

Buying Outright: Full ownership from the start

Buying a shipping container requires a higher upfront cost but offers full ownership immediately. This option is best suited for those who need a permanent storage and shipping solution, or want to avoid ongoing payments. 

Once purchased, the container is yours to use, modify, or resell as you see fit. 

While it demands more initial capital, buying outright often results in the lowest total cost over time. In fact, you don’t need to lay down a huge capital investment. 

If you purchase containers through our online container trading marketplace, you can decide from a list of negotiable, brokerage free, and wholesale container offers. You can directly contact the seller and drive down the price to get the best container deal for you!

Learn how 1,700 container companies are doing this.  

We bet you’re curious about the costs for Rent To Own. Don’t worry, we’ll go over this in the next section. Once you know what the overall cost is, it’ll become much easier for you to make the decision between buying, leasing, and RTO. 

How much does it cost to Rent To Buy shipping containers?

The total cost of a Rent To Own shipping container includes the container price, delivery costs, accrued interest, and overhead charges, if any. The cost also varies depending on the size, type, grade, and warranty of containers. 

Let’s compare the cost for rent to buy, renting and buying 20ft and 40ft dry shipping containers:

Price comparison for containers in the US
Container type (One-trip)	Rent To Own (12 months)	Renting (12 months)	Buying from xChange
20ft standard container	$200/mo for 1 year	$150/mo for 1 year	$1,700*
40ft standard container	$300/mo for 1 year	$250/mo for 1 year	$3,400*

*Please note that these are starting prices, and are subject to negotiation.

If you have a closer look at the prices, you’ll realize that Rent To Own is more expensive in the long term. For one-trip 20ft and 40ft dry containers, you’ll end up paying $2,400 and $3,600 respectively. These are much more expensive than the containers available on our marketplace. 

We have over 100,000+ containers available in over 2,500 unique locations around the globe. It’s so simple to get containers at competitive, negotiable, and wholesale pricing at 0% commission. The process of finding great deals, negotiating rates and making payments is quick, convenient and safe. 

Click the banner below to find the best container deals for you.

All you need to know about Renting To Own containers

Rent To Own shipping container agreements have several standard terms and conditions across the industry. Some important things to consider before entering into a Rent To Own shipping container leasing agreement include:

Can you modify a Rent To Own shipping container?

Container leasing companies generally don’t allow you to modify RTO containers during the rental period. Once you’ve paid all installments and got the ownership, you can modify the container as per your needs.

What are the common penalties with rent-to-own agreements?

Some companies have penalties for the late payment of monthly installments. You should also confirm if there’s any prepayment fine in case you buy out the lease earlier than your term.

How long does the Rent To Own container agreement process take?

This depends on the efficiency of the company, documentation, and your cooperation. Generally, it takes 2-3 days for the application process and 1-2 weeks for the final delivery. As for the entire Rent To Own shipping container agreement duration, this depends on the terms you chose.

Can you change the type of leasing agreement later?

Some companies allow you to change the Rent To Own agreement into a regular rental arrangement. However, you’ll need to confirm this with the leasing company.

Get shipping containers at wholesale & negotiable prices  

Now that you know all about Rent To Own shipping containers, is it for you? If not, we recommend buying shipping containers at wholesale prices instead.

Once you’re a member of our container trading marketplace, just type in your requirements in the public search and find available offers. Connect with container owners and negotiate to find container deals that work for you. Here are some of the benefits you’ll get when you become a member:

Use our trusted partner network

Stop spending hours of your time researching container suppliers — we do all of the dirty work for you! Each and every member on xChange has been vetted and pre-approved, so you can get straight into negotiating deals that work for you. Think of all the time you’ll save.

Compare prices easily

On xChange, all prices are available upfront. It’s easy to compare the prices for multiple offers on one single dashboard. So that you can make the best decision for your needs and budget. Close all of those tabs, it’s time to work efficiently on one marketplace, at last.

Negotiate container prices 

All prices and rates are negotiable, so you can pay a price you’re comfortable with. Not happy with the final price? Simply look for a new deal. You can speak directly with partners to discuss prices, terms and conditions. You heard right, absolutely no middle men involved.

No commission on containers

Need one more reason to sign up as a member on Container xChange? We charge 0% commission on all of our deals. So you can avoid those pesky hidden fees once and for all, and save money when buying or leasing containers.

If you’re ready to find offers on containers right away, why not sign up for a free demo of our container marketplace with one of our helpful experts? Finding out how to get containers at competitive prices, from reliable sources is just a banner click away!

Rent To Own Shipping Containers: Common FAQs

What is Rent To Own?

Rent To Own is a leasing method whereby you rent a shipping container for a specific duration, and at the end of the leasing term, the container is yours.

How much is a 20ft shipping container?

To lease a standard 20ft shipping container from Shanghai to Houston, you’ll pay a pick up charge of around US $463, from Qingdao to Chicago, US $391, and from Chengdu to Moscow US $1,300.

How much does it cost to rent a 40ft shipping container?

To lease a standard 40ft shipping container from Shanghai to Houston will be around US $1,106, from Qingdao to Chicago US $700, and Chengdu to Moscow US $1,201.