Have you checked out the new financing alternatives website. It seems to look newer, and has a pleasant look. They are now offering plasma tvs and other items. Sure this is good.
If you go to their FAQ section, something interesting to note.
They are now including a section of why their prices are higher. Yes, this is probably in response to the reports on here. They constantly refer to rent to own and how they are better.
They include a price comparison chart breaking down into categories. Buying a computer with a credit card, rent to own, going through financing alternatives, and a computer retailer. What's interesting to note is how they refer to a credit card with a 24% APR. They assume making the minumum payments on a credit card for 5 years. They assume making the minimum payments on a retail installment contract (Dell or Gateway) for 5 years. That is the best comparison they could use. NO one is going to make just the minimum payment anymore. Many will want it paid off soon.
I fail to see how rent a center charges 3800 for a comparible laptop or computer, and financing alternatives charges 1800.
They state the inability to get credit (obviously targeting bad credit people) as the sole reason for the prices being higher. They willingly admit that they charge higher prices than a cash computer to compensate for the risk of bad credit. Thus assuming everyone who signs up cant obtain conventional financing. This corroborates the fact they target these bad credit people.
I would still bank on the fact everyone can save a ton of money (even if they have bad credit and need a computer), by sticking 50 bucks a week into a shoe box.By the time you save 500 bucks (It takes FAI several months to ship the computer out to you... in those months, you could save enough to buy a comparable system for cash), you can buy one.
Why pay them a 29.99 a week when you can save that 29.99 a week in a shoebox? By the time they would ship the computer, you saved the same amount of money, and you can go to a local retailer and buy a similar computer. Only difference is you paid cash. Bad credit or not, you can still buy a computer for cash. You don't need to pay a company to ship you out a computer. You can save the money, buy it in town, then your done.
There is no excuse that these people have trouble with money or obtaining a computer. Whats the difference in saving 29.99 a week in a shoebox, and paying FAI 29.99 out of your bank account? There is no difference. Your still spending the same amount of money. You just don't have to pay several hundred more dollars out of your bank account. You buy with cash and avoid paying 1200 more for a similar computer.
Still a sub-prime ripoff in my book. If people needed to obtain credit to get a computer, but couldn't, they'd be better off buying one for cash. Or build one for less than 500 bucks!
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