Total cost of Rent to Own compared with straight-up purchase of same?

Question

I am curious as to how much I would save or how much I'd lose if I bought a large ticket item at a "Rent to Own" store as compared to just going and buying the same large ticket item at say..Sears or the Bay.

I tried asking a sales person at a rental store but they were either really new or didn't want me to see just how much more I'd be paying. I know there are taxes on both purchases.

Any stories or info would be really helpful.

I understand completely that there is a cost involved for the convienience of not having to pay it all out at once but just how much it that convienience costing us hard working people?

Answer 1

Here's a perfect example of what a ripoff rent-to-own or "lease-purchase" the  arrangements are to the consumer. A $250 Wii console can be yours for only $79 a month, and after 12 months, it's yours to keep. By that time, you will have paid $948 for it. By comparison, if you charged it to a credit card with 18% interest, you could pay $23 a month and have it paid off after 12 months.

What distinguishes lease-purchase from a retail credit sale is that there is no interest charged to consumers, no credit is needed, and customers can return the merchandise at any time. This no-obligation, no-debt feature is the cornerstone of lease-purchase.

That's right, if you decide you can't make the payments after, say, three months, you can just give the Wii back and not worry about it anymore!

Or, you could stay  away from , Rent-A-Center, and similar places and just put $79 in an envelope for three months, then go buy the Wii with cash.

Answer 2

Double maybe triple or more.  Try not to use "rent to own".