Most Americans think the rent to own transaction is a sale according to a recent national study. And when participants realized that it is not a credit sale, they scratched their heads and took notice.
Shoppers don’t realize there are four separate transactions in the marketplace especially for the home such as washer/dryers, HD TVs, couches, smart phones and many other items. Rent to own separates itself as a “terminable lease”.
Basically that means the consumer never has to make the next payment and can’t get in legal trouble for not doing so. As long as they return the product which means asking the local rent to own store to come pick it up. Easy. Other dynamics to the transaction is that there is no legal debt. These rent to own nuances make it completely different than a credit card purchase.
That is if you want to purchase the item through the rent to own store. You may be using rent to own to try the product before buying it. Or with computers and smart phones, you may want to keep it on the rental plan because then you’re able to upgrade without penalty or extra fees.
If you are using the rent to purchase option, their “90 days same as cash” and even “180 days same as cash” is the way to go. At least that’s how the shoppers in the study proclaimed. So next time you see an ad promoting rent to own, remember its best benefit is that you’re not locked into buying it over a long period of payments. You’re in full control of the payments and its final cost.