What you pay each way
Lease: $0 upfront; annual tank rent $50–$150 (often waived above 400–500 gal/yr purchase). Dealer owns and maintains the tank; you cannot legally have a competitor fill it.
Buy: $1,000–$2,000 upfront for a 500-gal aboveground ASME; $1,500–$3,500 for underground with excavation. You own the tank, maintain the regulator and connections (typically $200–$500 to replace the regulator every 15–25 years), and can shop any dealer at every fill.
Breakeven math
Customer-owned tanks pay back when cumulative gallon-price savings exceed upfront cost. Typical scenarios for a 500-gal aboveground:
- Heavy user, 1,500 gal/yr. Save ~$0.20/gal through dealer shopping = $300/yr. Tank pays back in 5–8 years.
- Moderate user, 700 gal/yr. Save ~$0.15/gal = $105/yr. Payback 10–15 years.
- Light user, 300 gal/yr. Save ~$0.10/gal = $30/yr. Payback 30+ years — leasing wins.
Non-financial considerations
Customer-owned tanks also remove tank pickup fees at contract exit (typically $100–$300 saved per supplier switch) and eliminate the prorated tank rent some leases charge after cancellation. On the other hand, you take on regulator maintenance, deal with the buyer's lender if you sell the home, and need to verify NFPA 58 compliance at install.
State anti-fill laws
About 10–15 US states have laws constraining tank lock-in: mandatory disclosure of tank ownership, capped pickup fees, right to purchase a leased tank at fair market value. These rules tilt the lease side of the calculation slightly. See your state page.
FAQ
Should I buy my propane tank?
Buy if you burn 1,000+ gal/yr and plan to stay 5+ years. Lease if you burn under 500 gal/yr or are short-term in the home.
Can I buy my existing leased tank?
Sometimes — depends on state law and dealer policy. Some states require sale at fair market value when switching; others don't. Ask your dealer; if refused in an anti-fill state, escalate to the state attorney general consumer protection division.