The number of rent to own companies has increased considerably over the past decade. Today, in television and radio advertisements, rent to own companies entice consumers with the line that they can get the things that they want now and pay just small amount each month until they have paid enough to own the product. Sounds like a win-win situation, right? Unfortunately, there are a number of common problems that consumers run into when purchasing items from a rent to own company that could end up costing them a great deal of money. Here are some of the most common problems found with rent to own companies.
The Ultimate Price You Pay Is Way Too High
Rent to own companies hook new consumers by promising that they will only have to pay a small amount each month towards the purchase price of the item to keep the item in their home for their personal use. What they neglect to tell consumers is that over time, those payments will add up to much more than the item is actually worth. In fact, consumers that purchase items from a rent to own store by making payments often pay twice as much as they would have paid buying the item new from a retailer once all of the fees and interest charges are added in. It is much better to save your money a little at a time until you can afford to buy the item from a retailer outright.
You Are Purchasing A Used Item That May Not Last Long
Many people do not realize that the items that they are purchasing through a rent to own company using a payment plan are used items that may have been returned by someone else who didn’t take proper care of it. This leads to an increased failure rate for the products. If the failure occurs after you have made all of the payments for the item, there may be nothing you can do about it because the item will not be covered by a warranty. Electronics and appliances are notorious for having these problems, so be careful when considering purchasing these types of items from a rent to own store.
If You Cannot Keep Up With The Payments, You Lose Everything
If you run into a problem making the payments on something purchased from rent to own companies using a payment plan, the company generally has the right to repossess the item, leaving you with nothing. It doesn’t matter if you have only made a few payments or if you have been making payments on the item for years. The company will not give you any of the money previously paid on the item back after the repossession, so you could find yourself in a worse financial position than when you started. Make sure you keep this in mind when considering whether to do business with rent to own companies.