Renting Furniture and Appliances

[bjl584]

I've been seeing a lot of commercials for Rent-a-Center lately. Rent a TV for $29.99 a week, rent a washer and drier for $39.99 a week, or something like that. No credit check required. I've heard of people renting furniture to stage a house that is for sale for an open house, but to rent this type of stuff because you can't afford it otherwise sounds like a bad deal. It seems like it's just as bad as a Payday loan. Does anyone know anybody that rents furniture, appliances, and electronics? I don't. But somebody must be or I wouldn't keep seeing all those commercials, and those places would've closed up long ago.

[disneysteve]

These places, like check cashing stores and payday lenders, prey on the poor and uneducated. People sign up for "low" payments to get luxury items (and sometimes necessary items) but when you add up the rental fees, they total way, way more than what it would cost to just buy the items outright. Sure that TV might be "only" $30/month but if that's for 24 months, you will have paid $720 for a TV that probably only costs $399 at WalMart.

Lots of people use these places, but again, it tends to be concentrated in low income neighborhoods where people want things they can't afford and don't have the credit to obtain it any other way.

[BuckyBadger]

My dad has apartment rentals and he once told me that almost everyone he ever had to evict never had crap from Rent a Center.

[greenskeeper]

similar to leasing a car, interest-only mortgages, etc.

[greenskeeper]

similar to leasing a car, interest-only mortgages, etc.

can't afford it but want to "keep up with the jones"

[SeanH]

Flatscreen TVs in the 30 low inch range should be less than $400 with a bit of searching and $200-300 at the right time of the year. New laptops are the same way. Laptops are now way more powerful than anything a normal person doing browsing and basic tasks needs. My wife and I had the option to purchase a computer at a variety of prices and capabilities from i3 to i7. The i3 was an easy choice and I haven't regretted it for a minute.

Renting washers and dryers is one of those experiences where you will have to ask 20 times - "what is the final price?". You will be renting used appliances unless you pay higher costs than indicated. They likely will not deliver them for awhile and you will only be able to rent them on long term signed contracts with penalty fees for early returns. In 2008 I investigated renting and went from initial phonecall costs of $20 a month to approaching 50 with a guaranteed unspecified penalty at the end of the year for needing to return them early (I was moving out, but I wouldn't have kept the washer for 12 months). I bought a brand new boring washer and dryer 2 days later from Sears for a price at almost exactly the year price point of renting. My wife's mother used the following unfortunate expression when I said we were considering renting: "Only people who work at gas stations rent appliances." ugh. The ultimate winner was my friend who inherited them when my wife and I moved.

[janareed88]

Hi – I work at RAC and I’d like to help answer some of your questions. We’re sorry you feel that way about RAC and rent-to own. Our cash prices are comparable to many other stores, and you can choose to make small, manageable payments without relying on a credit card or a store’s financing program. And there’s no long-term contract, so you can return the item if you need to and owe nothing more. So you’re always in control, and you don’t get stuck with a payment or big credit card bill you don’t want. If you want to own your item, we offer 90 Days Same As Cash and other money-saving early purchase options. We even include delivery, set-up and maintenance. Hope that helps!

[BuckyBadger]

Hi – I work at RAC and I’d like to help answer some of your questions. We’re sorry you feel that way about RAC and rent-to own. Our cash prices are comparable to many other stores, and you can choose to make small, manageable payments without relying on a credit card or a store’s financing program. And there’s no long-term contract, so you can return the item if you need to and owe nothing more. So you’re always in control, and you don’t get stuck with a payment or big credit card bill you don’t want. If you want to own your item, we offer 90 Days Same As Cash and other money-saving early purchase options. We even include delivery, set-up and maintenance. Hope that helps!

From the VERY fine print on rent a center's website. Took me quite a while to find it.

*60" LG Plasma TV (model 60PA5500) or 55" LG LED TV (model 55LS4600) at $29.99 per week for 104 weeks, Total of All Payments: $3,118.96;

From this website: $1,100 for the plasma

LG Electronics 60PA5500 60" Class Full HD Plasma TV

and $1,100 for the LED

http://www.bestbuy.com/site/LG---55%22-Class---LED---1080p---120Hz---HDTV/4846747.p?id=1218551139323&skuId=4846747

Explain how that is comparable, please. It appears to cost almost three times the retail price.

[disneysteve]

you can choose to make small, manageable payments without relying on a credit card or a store’s financing program.

How exactly are you not relying on a store's financing program? You're financing through RAC at an outrageous interest rate. What is it? About 300%?