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Is Rent To Own A Good Idea?

The rent to own industry has played an important part in helping consumers purchase items that they normally would not have been able to afford had they had the cash on hand. You can rent appliances, furniture, electronics, personal computers and so much more and eventually own these items when your rental agreement has been met. Is rent to own a great idea or are there better ways for you to acquire desired goods? Read on and we'll take a look at one segment of the consumer financing industry: rent to own.

That new washer and dryer set you have your eye on at home depot will be a perfect fit in your laundry room. You already have all of the hook ups but the $959 price is well beyond your budget. Still, you can't help thinking that the $10 to $15 you spend per week at the laundromat could go to better use. Plus, who wants to spend hours washing and drying clothes when everything can be done from the comfort of the home?

As a result of the rent to own industry you no longer have to make those weekly trips down to the laundromat. Instead, you can order your washer and dryer, have it delivered to your home installed. After that, you have several options on how you will pay for your washer and dryer including weekly, bi-weekly, monthly, and 90 days same as cash plans. Each rent to own company has their own requirements so check the contract for the terms that is right for you.

There are some things that you as a consumer need to know about the rent to own industry before deciding to make use of it:

The rental contract states that you are obligated to continue to make payments until the contract has ended. This means that if you want to get rid of your current washer and dryer you have to continue making payments until the end of the contract time. If you break the contract, penalties will apply, possibly pushing your overall costs up through the roof.

Prices you pay at a rent to own center tend to be much higher than you would pay at a normal retail store. Also, figure that you will have to pay monthly interest charges and other fees spelled out in your contract.

Despite popular belief, not all rent to own centers are equal and some states heavily regulate stores because of constant consumer complaints about unfair or unethical contracts. If you are in doubt, contact your state's consumer affairs department or attorney general's office for information about the rent to own industry.