Why Rent To Own Furniture Might Be A Financial Trap You Need To Avoid

Rent to own, also known as “rental purchase” is a type of legally documented transaction under which a piece of property is leased for a weekly or monthly payment. This can include furniture, motor vehicles, consumer electronics or home appliances. There is the option to purchase during the agreement, though you are not under any obligation to buy. There is also the potential to trade in your purchase for something else at the end of the agreement.

What are the benefits of rent to own furniture?

The benefits are fairly obvious: you can get the latest models and styles without the big one off outlay. Most rent to buy companies will let you take out an agreement for as little as $25 depending on what you are planning to buy with them. You also have the option to give it back should you decide you no longer like or need it. And, if you decide you love it, you also have the option to buy it and keep it forever.

What are the down sides of rent to own furniture?

These companies exist to make a profit, so they will cost in some pretty heft margins on your weekly or monthly payments. Whilst it seems like a cheap option, when you calculate the total cost you have spent over the whole time of the lease, there is no doubt you will have paid more than the original value of the item. If you can, you may be better off purchasing your furniture with a credit card and paying it off in installments. Make sure you do your sums.