Many retailers, rent to own furniture stores and short term loans offer ’90 days same as cash’. Each are significantly different so pay attention to the details of the offer. If used wisely, ’90 days same as cash’ is a great way to buy home furnishings or for a loan but you must have discipline to make the most of it.
The premise is if you can pay off the item or loan within 90 days then you are charged no interest or additional fees. Here’s the breakdown, advantages and disadvantages of each.
When shopping for furniture, electronics, appliances and computers most rent to own companies, if not all, offer the ’90 days same as cash’ option. Some even go as far as 180 days. Check each store’s policy before shopping each option. If you can make consecutive payments within the 90 days then you are able to acquire the product for basically the same as retail but avoid the trap of debt or interest because there is no interest nor debt in a rent to own transaction.
If you can’t make the 90, 120 or 180 days then your payment plan is turned into a rental agreement that you choose. If you complete enough of the rental payments then you own the product. The rental payments do not include interest nor debt and can return at any time for any reason without penalty. That’s the clear distinction between the rent to own transaction and a credit transaction.
If you made one or two payments then your rental payments can either be lower payments, lower number of payments or a balance of each. And, you get to choose the amount and number of payments. Remember, the golden rule of any transaction is the less payments, the less total cost. The fact that you already made several payments already guarantees a reasonable final price through rent to own.
Here’s the catch that you need to watch. Make sure the original cash price is fair to the market value. Cash prices can vary widely so shop against rent to own stores in your area to find the best cash price between them. Even bargain against each other. You’re the customer, they want your business so try. Make sure you talk to the manager or owner, though. Many times, they are the only ones with the authority to bargain.
Retail ’90 days same as cash’ is the same premise as rent to own but it is a credit transaction. You have a legal obligation to fulfill the transaction whether 90 days or more if you cannot meet the 90 days obligation. If you cannot make the necessary payments within the 90 days then you’re put on a credit payment plan and interest is charged. Sometimes an outrageous amount up to 20 -24%. Make sure you ask that specific question before entering a retail ’90 days same as cash’ transaction.
The pros of a retail ’90 days same as cash’ is that the retail price is usually a good deal. They’re counting on you to not be able to complete the payments then you get hit with fees, penalties and interest. And you’re legally obligated to finish the payments that now are on a credit basis that you originally agreed prior.
’90 days same as cash’ is also a cash loan transaction. They can be great if the loan is small and you’re in a bind but those can be the most costly if you cannot make the payments in those 90 days. So make sure you corner them on the exact cost, penalties, interest that will happen if you cannot make the payments in 90 days.
The bottom line with the ’90 days same as cash’ offers is they’re great with discipline. If you’re unsure though then be careful especially with cash loans. In regards to ’90 days same as cash’ with home furniture and other home goods, retail vs rent to own have a very distinct difference between being obligated to the debt you legally signed yourself to versus the debt free rent to own transaction.