If you make all your rent-to-own payments. you’ll own the item at the end of the term. You might also be able to buy the item during you’ve already made. Some rent-to-own stores have same-as-cash options of up to six months — during that time you face no rental charge if you pay the entire “cash price” within the specified period. These are enticing options if you can’t qualify for credit.
Sounds great right?
Consider the deal for a $612 Toshiba laptop computer we found at one rent-to-own store. It was being offered at $38.99 a week for 48 weeks. for a total of $1.872. excluding sales tax and other charges. That’s the same as buying the laptop at the manufacturer’s suggested retail price and financing it at an interest rate of 311 percent. You could buy three of the laptops outright for that $1.872.
Even a high-interest-rate credit card
A better option than rent-to-own. Let’s say you were to finance the laptop at 29.99 percent. among the highest credit-card rates we could find. and pay the same $38.99 a week. You’d end up saving more than $1.000 compared with the rent-to-own scenario and own the laptop in about 20 weeks. instead of 48. Even better. if you were to put that $38.99 in the bank every week. you would have to wait only four months to buy the laptop. Savings: $1.260.
“I think that the rent-to-own model
Generally is a remarkably expensive way to obtain what you need.” said Jim Sugarman. a Washington State assistant attorney general in the consumer-protection division. “There is usually a better way to obtain what you want if you do a little whatsapp data planning and have a little patience.”
Need another reason to avoid rent-to-own shopping? Even if you were to exercise the early-purchase or same-as-cash option under the rent-to-own agreement. there’s a good chance that you’d pay more because the “cash price” at rent-to-own stores often is higher than at other retailers.
The negatives don’t stop there
You could face other charges. including if you are late with a payment and want to reinstate the agreement so you don’t lose the benefit of what you paid so far.
The industry says it provides an essential mastering seller leads: essential strategies for real estate agents service for those who are unable to obtain credit from banks or traditional retailers and would be otherwise unable to obtain items they want or need.
“These people need that refrigerator. they need that couch. they need that bed for the kids.” said Richard May. a spokesman for the industry trade group Association of Progressive Rental Organizations (APRO). “They know exactly what they’re paying for.”
More Than Just High Costs
Rent-to-own stores have also been accused of engaging in questionable business practices.
In 2010. the Texas-based Rent-A-Center. the nation’s largest rent-to-own company. settled charges by Washington State. which accused the company of using aggressive collection tactics and of violating the state’s law governing lease-purchase aero leads agreements. Although the company denies wrongdoing. it agreed to pay $343.000. modify some of its business practices. and provide additional employee training.