Downside of rent to own Items
Before you settle on rent to buy tv, you need to look at both the pros and cons of rent to own items. Depending on the features of the television, it might range from $370 to $12000. The high price tag does carry over to almost all main appliances in the home.
If you are trying to furnish your house or just trying to make an upgrade in your older home appliances, to pay the full price upfront for the new models might not be the best option. To rent so that you own the appliances might be able to help you in upgrading your home without the need to force yourself paying everything upfront.
While it might be convenient, to rent appliances is not always the best choice for every person. Though there are various benefits of having to work with the shops for to rent to own, but there seems also to e few pitfalls that you will have to be aware of. While they aren’t severe to let you not to sign the lease, ensure that you are familiar with all of them so that you can decide according to your personal finances. Get to know the cons of renting to own items:
You will have to pay more than it retails for
At the end of it all, you are going to pay more for the appliances through having to sign a lease as you would have bought the appliance in the store for cash. While it is not going to hurt your credit score, it might end up taking a toll on the budget in the long term.
If you can, try saving up to buy the appliances that you require instead of renting them. With that, you are assured that you will pay less and you will avoid the stress and frustration of the financing payments monthly.
High interest rates
Most of the shops for rent to own do charge you an interest rate on the product. The rate will vary from one shop to the next, but in most cases, it tends to be higher than the rates that you will get when taking a personal loan. There are certain interests which will end up doubling the price of the appliance over time of your rental agreement.
If your goal is to buy a certain appliance without the need to pay the entire price upfront, you might go for the personal loan instead. Though you will pay an interest on the loan, it is going to be lower as compared to the rates with the rent to own shops charge.
There are hidden fees in some stores
The agreements for rental that you are going to sign will tend to vary from one company to the next. Most leasing stores for appliances are known to add hidden fees in the agreements which you are going to find out when you keenly read the agreement. At the end, you will pay the penalty in case you miss a payment or even fees for cancellation in case you terminate the lease for whatever reason.