Rent-To-Own

By: McKenna Hunt

Rent-To-Own

Tangible items such as furniture and electronics are leased with the condition that the item will be owned by the renter if the term of rent is completed.

Intrest Rates

311% interest.

Example: $612 Toshiba Laptop.

They would make you pay $38.99 a week for 48 weeks for a total of $1,872.

Average APR

221%

Example

Rent-A-Center and Aaron's

Why?

An ideal situation where this would be a good option is say you are moving into a rental home and do not want to go through the struggle of getting your furniture out of storage, you could rent temporary furniture. Another situation would be the super bowl. Many people rent large flat screens for the event.

Advantages

One advantage would be they will deliver the furniture to your home. Another one is you can always take the item back whenever you want to and most of the time you can get the item or items the same day you apply.

Disadvantage

One disadvantage would be you pay almost double the original amount that it would cost at a store. Another one is if you break or misplace the item you still have to may payments on it.