No, Wags is not a credit card nor a loan. Wags is a closed end consumer lease with fixed monthly payments and early purchase options throughout the term of the lease.
A closed end consumer lease is a program with fixed monthly payments, and a fixed contract term, where a lessee has the option to buy out of the contract early, or purchase the property after the full lease term has been fulfilled.
A loan is an agreement where a lender gives money or property to a borrower, and the borrower agrees to repay the money, usually along with interest, at some future point in time. Typically, the borrower will own the pet they are financing. A lease is an arrangement where a lessee (the renter) agrees to rent the pet from the lessor (the owner of the pet, Wags) for a specified period of time, in exchange for a monthly rental fee or leasing fee. The lease guarantees the lessee the right to possess and use the property during the course of the lease, however the right of ownership is still with the lessor.
This is a lease agreement, so there is no interest associated with this program. Any amount you’d pay beyond the financed amount are rental fees. They are predetermined based on your total receipt amount and will not change.
No. We do not charge an application fee.
The payments that a customer makes per month are fixed, and will never increase or decrease.
The customer will make these payments over a predetermined term of 12 or 24 months, depending on the receipt total price of the pet, sales tax, and additional items such as food, or toys they may want to finance.
The rental fees mentioned above can be more than double what the customer financed if they run their contract to full term.
Customer can save money in rental fees by making only the minimum payments until they can pay what is called the Early Buyout. The Early Buyout is a lump sum payment that the customer would make on the month they'd want to no longer be under contract. Customers are able to buy out of their contract at anytime.
Customers can buyout and purchase their pet at any time during the lease term. However, the earlier customers purchase the pet, the more money they'd save overall. Up to 55% savings from the total term cost.
The buyout payment total, includes what is currently owed plus 15% of the pet's value. this is also known as a "purchase fee".
The purchase fee will have to be paid at the end of the lease term even if the customer does not buyout early.
The purchase fee makes the pet legally the customer's owned property and no longer under a lease.
Estimates for monthly payments, contract term, and buyout amounts at certain months can be found on the Pricing page at http://wagslending.com. This tool can be accessed by retailers and customers alike.
EXAMPLE: on a $1,000.00 dollar finance, the monthly payments will be $92.26 per month.
For 24 months. 92.26 x 24 = (2214.24) <= Total paid over 24 months Minus 1000 financed = 1,214.24 in financing fees.
The customer will have paid $2,214.24 over the course of 24 months.
The customer can buyout at any time in order to avoid paying this amount.
The buyout for a $1,000.00 finance is as follows:
After making 1 monthly payment, the buyout = $1114.58 (1st Monthly payment of 92.26)+1114.58 = $1206.84.
After 1 monthly payment plus buyout, the customer would have paid $1206.84 in total for the contract. 2214.24 – 1206.84 = 1007.40.
The customer would have saved $1007.40 from the full contract term amount.
A savings of roughly 45%
After paying the buyout, the contract would end, the property would be considered purchased, and we’d report to the credit bureaus as PAID IN FULL.
The customer’s credit would be impacted positively.
Note: The customer can pay their buyout at any time. Assuming they’ve fulfilled monthly payments on time, they are not restricted as to when they can pay this.
Amounts on example reflect current pricing and are subject to change*
Since this is a lease, Wags owns the pet throughout the course of the lease. However, the customer has the option to purchase the pet at any point during their lease. The customer also has the option to purchase the pet at the end of their lease by paying the purchase fee.
Technically, a customer can make more than their minimum monthly payment each month, however it will not save them any money. Instead, it will only shorten their leasing period. To save money, Wags suggests that the customer exercise their early buyout option. The earlier a customer exercises their early buyout option, the more they will save.
Monterey Financial is Wags' third party billing service provider. They collect payments and manage our customer’s accounts. The Wags customer service line is available to offer support with difficulties on the actual application, drafting a contract, or general questions.
No. Legally, 2 people cannot lease 1 pet.
No. It is a company policy, we only allow 1 pet to be financed per applicant.
Yes. When you submit your application with WAGS Lending you give us the right to run a hard credit inquiry.
Approvals are valid for 30 days from the date of application. If the approval is not used within 30 days it will expire and a new application will need to be filled out.