Most Americans live paycheck to paycheck thus payment to payment especially when it comes to home furniture, refrigerators, washer/dryer combos and other large purchases for the home. Two payment options out there are rent to own stores and furniture stores offering layaway plans. So, what’t the difference?
The basic premise of a layaway plan is that the customer picks an item, let’s say a couch and puts a deposit on it to secure that the product is theirs once completed payments are made. The furniture store lays away, in other words, sets aside that couch until you finish the payments. When you finish, the couch is yours.
Payment plans vary from eight to sixteen weeks. The catch to consumers are the service fees, potential cancellation fees, re-stocking fees and the delivery fees if you pay it off. Layaway plans, fees and prices vary from store to store and from state to state.
Rent to own is different in many ways. The biggest difference is you get the item immediately with your first payment and many times that same-day delivery. Delivery is included in the rent to own plan so no extra fees there. That’s the most important distinction.
Payment schedules are in the customers control. Pick weekly, bi-weekly or monthly. And change during the course of payments if you want. Smaller payment schedules range from one year to two years. Remember, though, the longer the payment schedule, the more the overall cost. Try to use their early purchase option or their 90-days or 180-days same as cash.
If you can’t make payments, the store will retrieve the furniture and keep it for awhile to give you a chance to get back on track. If you do reinstate payments, you shouldn’t lose any previous payments but make sure you check with the store on their policy. Many states mandate payment reinstatement rights. But, conversely, many rent to own stores offer lifetime reinstatement payments.
Both options are about payments and the lack of legal debt. Layaway plans are somewhat restricted in their use, have shorter payment schedules and you have to wait, sometimes months, to get the furniture in your home. With rent to own, you get the product immediately. The payments last longer but the flexibility of the payment schedule is way beyond layaway and credit cards for that matter.
Just another ShopRTO rent to own furniture tip.
ShopRTO provides consumers home living, finance tips and rent to own as a shopping option for affordable home furniture and more.