Why it is Never a Good Idea to Buy Rent-to-Own

Buying from stores like Aaron’s or Rent-a-Center can be appealing, especially if the buyer has credit issues.  These stores often market to those with not-so-good credit by making promises like “Worry Free Approval” and “No Credit Needed.”

While their promises may seem enticing, it is never a good idea to buy from places that offer rent-to-own deals.  Why? The items at these stores are always over-priced.  The buyer is paying for instant gratification without a credit check. 

Rent-a-Center is currently trying to rent or sell a 55 inch Sony HDTV for the “low” price of $29.99 per week. That does not seem that bad.

But, by the time the television is paid off, it will have cost the purchaser around $2,418.00. That same television can be snagged at Best Buy for $1,599.00, for a savings of $819.00. This proves that it is better to save up the money and pay cash for a new television rather than make high-interest payments to a rental store. Just be patient and tons of money can be saved.

For an even better savings, shop second-hand. I found the same television brand new on e-bay for $1,198.00, with free shipping, and a 53 inch used Sony television for $600.00. Craigslist had a 50 inch Sony television and matching stand for $500.00. Local papers are another great resource for buying electronics, furniture, appliances and more.  If you give yourself plenty of time and do a little research, you can find exactly what you want for a fraction of the price.

By avoiding rent-to-own stores, you just might discover that you will find better quality items for less money without running the risk of repossession or credit ruin if payments are late or missed.  Plus, you will have made your purchase DEBT FREE and that is an awesome feeling!

But do not just take my word for it, All Financial Matters also believes that renting is a bad idea.  Check out their furniture analysis here.