Rent To Own
Desmond Barnett
Definition
An arrangement between a consumer and a seller that allows that allows the consumer to rent an item for a period of time.
Why Rent To Own?
People use rent to own when they can't afford one lump sum but can make payments
Alternatives
Layaway
A system of paying a deposit to secure an item for later purchase.
Credit Cards
A small plastic card issued by a bank, business, etc., allowing the holder to purchase goods or services on credit.
Retailer Financing
Financing items from the business or company.
Advantages and Disadvantages
Pros and Cons
Advantages
- Improving credit
- Lock prices on items even if value rises
Disadvantages
- Do not own the item until fully paid
- End up paying more than double original price