In response to the many other complaints I have seen posted to this site, I have this to say: I began my experience with Rent-A-Center back in January of and continue to do business with them. If I had it to do over, I would NOT. I have viewed the various complaints here, some of which I think have very good points, and some perhaps do not.in order to be fair, I am going to lend my opinion, along with my experience on both sides, in order to help anyone who may be considering the purchase or rental of items from Rent-A-Center, or any other rent to own business.
The most important aspect to any business, is supply and demand. Unless that business is a non-profit, then the goal of any business is to make a profit, thus continue and grow.
The rent-to-own industry has become very popular in the last two decades, and has grown by leaps and bounds. One way they have done this, is by making a lot of money. How they have made that money, is what is being called into question, by myself, and many others who at times have fallen victim to aspects of this business.
Let this serve as a warning to those out there who may be considering the rent to own way of life.
Some rent to own businesses, including Rent-A-Center, will lure you in with their "No Credit Needed" advertising. To a young person who is starting out with no credit, or to anyone who has had a bad credit experience of any kind, such as medical bills on your credit report may find this very appealing. The thought that with a few bucks in your pocket, some proof of income and a few references, you can get anything your heart desires from their store. They have all kinds of furniture, appliances, Tv's, Stereo's, Video Games and Computers. Many will run promotions or sales, and even offer you a second weeks rent free with your sign up. This sounds really good at first, and can be very tempting. What you don't know, or may not realize can hurt you.
When you go into a regular retail store and make a purchase, unless the item is a display, you can almost bet that item in brand new. It will come in a sealed box, in its original packaging, and you don't have to
take anyone's word on how old this item may be, or if it has ever been used before. The same does not hold true with most rent-to-own stores.
When you browse a rent-to-own store, almost always their entire inventory is on the floor, all of which has been removed from its sealed box, and opened, and everything is on display. This can put you at a disadvantage, because you don't really know for sure, if the item has ever been used or not. Not only that but if the item has been used, just how used is it? When it comes to some appliances, there may be a date code stamped by the manufacturer, but not always, thus you are dependent on a sales person to tell you the truth about the product, and this can run into problems. Many times you will find the items marked as pre-rented, and in some cases you will see a tag that states there is a certain amount of weeks or months left of this item to obtain its ownership.
DO YOUR MATH! Look at them item, look for a date code, if none exists, look at the signs of wear and tear, and consider the condition of this item, and how much it will cost to own the item if you went the full term they are asking you to go on it. Are you buying a used sofa, that could only be worth 50 bucks at a yard sale, for 700 dollars? How about a dvd player that can be bought brand new at Wal-Mart for 48 bucks, that may end up costing you 400 to rent? For instance an x-box video game with three free games, can be purchased brand new for around $198.00. The same with out the free games could cost you over $500 at a rent-to-own, and may even be used.
Stop and consider what your options are before you enter into any kind of contract. Almost always any item be it new or used will have a greater retail at a rent to own store, than at a regular retail store. If this item is not something you have to have at the moment, consider using the lay-away plan that many stores offer. You can save a ton of money that way!
Now lets look at what happens if you do decide there is an item at the rent-to-own store that you just have to have. The item is brand new and perhaps is a high dollar item like a big screen tv. Stop again and consider the CASH PRICE of this item. How much money will it cost you if you pay it off in 90 days? Then ask what the TOTAL AMOUNT TO OWN is going to be. I think you will be amazed at the difference. A big screen tv that you could buy at a super discount store for $1,000.00, could end up costing you over $5,000.00 at a rent-to-own.in other words you could be paying 4 to 5 times what an item's real market value is. You could own 4 or 5 big screen's for what you are paying for just one.
Now lets consider the payments. Most rent-to-own stores offer weekly payments. This can seem to be an easy way to pay, but may also be the most expensive.
For instance, did you know that it can save you hundreds of dollars over the life of your contract if you make your payments monthly? Another thing to consider, is it may be best to start out paying monthy after your initial payment so you are payed in advance incase you may be off work for a week or so, and could save you late fee's.
Look very close at the INSURANCE or PROTECTION PLAN that they like to put on items. Did you know that they are required to maintain your item FOR FREE as long as you are renting it from them? If it blows up, they are required to fix or replace it at no extra cost to you, and you DO NOT have to purchase their insurance or any protection plan of any kind in order to rent an item. If you are a homeowner and have homeowners insurance, your item should be covered already, by your policy, you should check with your agent to make sure. If you dont own a home, you may want to get renters insurance, to cover all of your belongings, because chances are, that insurance would be less expensive than what you would pay to PROTECT just one item over the life of a contract with a rent to own store.
The bottom line is this, if you choose to rent to own, you should know in advance that the chances of you paying more for your item is much greater, not to mention it could be a lot more, sometimes 4 or 5 times more.
Now lets talk about Verbal agreements. Here is where I ran into a MAJOR problem. DO NOT EVER accept a verbal agreement. There is nothing to back it up. I purchased an item that I was told would be replaced with a brand new item "as soon as it comes in", and that was 6 months ago. When you rent an item from a rent-to-own store, you are renting the item on your contract, and not the one that has been promised to you. You also have no way of being assured that you are going to receive FULL credit for what you have paid unless it is in writing. I was told it would only take a month to receive my NEW item, and it has been six, and still is not here. Unless you get it in writing that they will replace your item with a brand new one, you are left at their mercy. DO NOT LET THAT HAPPEN!
In closing I have this to say. If you buy from a rent-to-own, it is not like making a purchase that is financed. The items are never YOURS untill every single rental payment has been made. You are not building credit, because if you remember, they tell you that no credit is needed, and while they may serve as a reference for you in the event you need one, it is NOT the same as financing, and your rights are not the same either. You will also find that the payments are much higher to rent-to-own than to finance, because the terms are different.in my opinion the advantage of the rent-to-own starts at the beginning with the higher retail, and continues with higher payments, protection plans, late fees, and of course the fact they can get tons of money out of used merchandise that would otherwise have a yard sale value. Not to mention that they have the right, at anytime, to pick up their items, if you fail to make a payment, even if you are only one day late! So be aware of your rights, and the cost of doing business both ways before you sign on the line.
Steven
Anytown, Ohio
U.S.A.
0 comments