Industry Tips
Rent To Own
Although the advertised rental rates for a rent to own product may sound low and affordable, you should note that when the amount is multiplied by the number of weeks or months before you actually own the merchandise, the total cost may be greater than if you had purchased the item with cash or on credit.
In case of rent to own transactions, the consumer takes possession at the time the contract is signed, but there is no ownership until the total of the required rental payments is made.
Rent to own contracts usually have either a weekly or monthly rental period, and are renewable at the end of each week or month. You are not obligated to continue renting the merchandise, and you can return it to the store at any time. At the end of the contractual period, you will own the merchandise.
