Are Rent-to-Own Appliances a Good Idea?

Are rent-to-own appliances a good idea? This is a great question to ask if you do not have the funds to purchase an appliance. Understanding how a rent-to-own business works and considering the pros and cons of the deal will help you answer this question.

How a Rent-to-Own Business Works 

A rent-to-own business allows the customer to rent or purchase appliances for his or her home. The customer can rent the appliance for an agreed-upon period and will make payments on the appliance during that time frame. The payments may be made weekly, bi-weekly, or monthly, depending on the terms of the contract. A customer may also choose to purchase the appliance through the same payment methods.

Pros and Cons of Rent-to-Own Deals

If you are unable to pay for the appliance in full or cannot get an installment loan from a financial institution, a rent-to-own company may be right for you. It is important to understand that you may be required to make payments for the entire contracted time frame even if you want to return the appliance early. You will also pay a much higher interest rate than you would if you had a loan at a financial institution, so you will end up paying quite a bit more for the appliance in the long run. 

Improve Your Credit Score - Free Consultation