My husband and I recently purchased our first home. We moved from a small two bedroom apartment to a three bedroom home, with a full-size basement. We now have a lot more space, which is great, but it means we need more furniture to furnish all of the rooms. Several people have suggested we try a local rent to own shop, but I just don't think that's a good financial decision for my family. Here are three reasons I avoid rent to own home furnishings.
When my husband and I first moved in together we actually considered renting a sofa and loveseat. We went to a couple rent to own stores and found they were all overpriced. One of the sets we were looking to rent was priced at $2,300. The payments would have been nearly $65 a month plus taxes for 36 months. After shopping around, we were able to find the exact same set for $700 at a local furniture store. That is a $1,600 difference.
Too long of an obligation
The economy has had so many ups and downs in recent years that I'm afraid of taking on too many obligations. Renting something that will take years to pay off just doesn't make financial sense to me. If we were to rent something for 24 of the 36 required months, and then find ourselves unable to pay, we would lose all the money we paid.
Doesn't help our credit
If I were going to buy something that requires monthly payments, it makes more sense to take out a small personal loan. Some of these rent to own places do not report to the credit agencies, which means you aren't doing anything to increase your credit score. I have a very low credit score due to identity theft and I have to make choices that will improve that score whenever possible.
Paying full price for used items
I have family members that do use rent to own stores. Many of them have rented something and received a used item. I'm not opposed to furnishing my home with used items, but I do not want to pay new prices for them. The items are always overpriced, so even if they give you a discount because the item is used, you are likely still paying more for it than you would if you bought it outright.
I understand that rent to own works for some families, but it just doesn't make sense for mine.
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