The high costs associated with allowing people to return items after as little as a week. Leaving the stores with used products that often have lost a significant part of their original value. The industry also says that its losses are much higher than those of standard retailers. with many missed. And late payments and damaged and lost or stolen products. And the industry says its stores have higher labor costs. having to deliver and often pick up rented items.
As for its customers the industry reports
Only about 7 percent of customers rent an item for the entire term. and only 25 percent end up owning the rented items. typically by exercising the early-purchase option.
In a 2000 report. the Federal Trade Commission warned about overregulating the industry. “Careful analysis also should be undertaken before adopting policies that would substantially reduce the availability of rent-to-own transactions.” the report said.
“Most rent-to-own customers are satisfied
with their experience with rent-to-own transactions. suggesting that the rent-to-own industry provides a service that meets and satisfies the demands of most of its customers.” The report found that abusive industry practices were not widespread.
Avoid rent-to-own. even if it means postponing purchases until you can better afford them.
Alternatives to Rent-to-Own Shopping
Paying twice the market price or more for an item rarely makes sense. If you can afford the weekly or monthly payment of a rent-to-own phone number library agreement. consider saving that amount instead. You’ll end up owning the item sooner. You’ll pay far less. and you might even earn a little interest. Avoid the temptation for instant gratification for items you might not need right away. such as a big-screen TV that replaces your existing working model.
Such as a computer for school or work
Look for alternatives until you can save the cash. Maybe a friend or family member has a computer you can use. or try a public library. where computers and Internet service often are available free. Sign up for a free Web-based e-mail account proven strategies for generating quality roofing leads from a provider such as Google or Hotmail. which you can use from any computer. Save by considering used products or models without the bells and whistles that you may never use anyway.
Another option is finding out whether
You qualify for retailer financing. Many stores offer no-payment-period. no-interest financing. But interest accrues during the no-payment period and you’ll be on the hook for it if you can’t pay for the item by the end of the no-payment period. So if you use this option. be sure to set a certain amount every week to cover the eventual payment.
Using a credit card should be a last aero leads resort. especially if you’re cash-strapped to begin with. If you have one and absolutely must use it. avoid making only the minimum payment. If you know how much the payments would have been had you obtained the items at a rent-to-own store. add at least that amount to your regular credit-card payment every month. and you’ll likely come out way ahead.