You’ve probably seen the “rent to own” advertisements for furniture, televisions, and appliances at businesses like Rent-A-Center.
However, you might be shocked to find that the rent to own business model can be used to get items such as laptops, jewellery, musical instruments, gaming systems, tyres and wheels, and even a home.
That approach is very straightforward: make a series of payments over a set period of time, and the thing is yours. You may easily return the item if you change your mind.
Renting to own might be a viable option in the event of an emergency, such as a fire in your apartment that destroys all of your things. However, the majority of people rent to own because they cannot afford to purchase outright.
According to industry experts, According to the Association of Progressive Rental Organizations, 41% of consumers had an annual income of less than $24,000. Another 31% have a yearly income of less than $36,000.
People who don’t make a lot of money will be enticed by advertising that depict nice-looking furniture, the latest technology, and sparkling appliances, especially if the ads include terms like “no down payment,” “no credit check,” and “same-day delivery.”
However, such convenience comes at a price.
According to the Federal Trade Commission, most rent to own items will cost twice or treble what you would pay if you paid cash or paid in instalments.
Is it ever a smart idea to rent to own? That is debatable. Because this is a complicated subject, we’ve made it simpler for you.
Is rent-to-own the best option for me?
Buying using cash or a credit card that you pay off in full is always going to be less expensive than financing a purchase. In other situations, though, a rent-to-own scenario may be the most practical alternative.
Consider the following scenario:
Someone who has a job offer and needs a computer right away may look around for the best bargain and get to work.
They could then save as much as they could from each paycheck, seek for a good bargain on computers and pay cash, and then return to the rent-to-own arrangement. Same goes for buying a TV
Renting to own household TV and personal stuff necessitates careful investigation.
Read the contract thoroughly and ask the store clerk to clarify any points that are unclear.For example inquire about the features and models such as Samsung – 55″ Class – LED – NU8000 Series . These come in a variety of sizes such as samsung – 75″ class – led – nu8000 series – 2160p – smart – 4k uhd tv with hdr or Samsung – 65″ Class – LED – NU8000 Series – 2160p – Smart – 4K UHD TV with HDR.
Instead of signing the deal right away, take it home and think about it; if you have a spouse or partner, have them go over the contract with you and debate the benefits and drawbacks.
Walk leave if the store clerk presses you to sign immediately away. This isn’t a choice that should be taken lightly. When you go to a rent-to-own car dealership, the same thing applies: Allow no one to pressure you into signing anything you don’t fully comprehend or haven’t properly considered.
However, at the end of the day Rent to own is a convenient and cost effective option.