It can be an expensive affair if you do not consider the factors of rent to own washer and dryer sets even in the bestcase scenario. This is required to prevent you from paying more than what your purchase is worth. However, most people make this commonand costlyfinancial mistake especially when they purchase a product on an installment plan. Whether it is through dealer financing or credit card, the size of the EMI is not as important as the total cost for the product. To be truthful, it is this common mistake on which the socalled “rent to own” businesses thrive.
Rent To Own Business Model
The entire model of rent to own business depends on the nearly double price that you pay from the product. Sometimes you will find that even after you return the stuff back your payments will continue and that too at a high rate. It will seem that the EMIs are never ending. However, it is not all bad a business though. The significant advantage of the rent-to-own business is that it offers you more immediacy than any regular retail though it may be a bit dubious at times. If you do not have the money in hand to buy a TV now, most rent-to-own business will allow you to take it home.
Nothing To Demonize
In exchange of the immediacy you end up paying hundreds of dollar more than the actual worth of the TV. Still, experts say that there is nothing to demonize the rent-to-own business and the business owners are not greedy at all. The high markups are actually to cover up the financial risks that are genuinely inherited in this business. There are chances that the high ticket items may not be returned or returned in fair condition. In case of non-payment the cost of hiring a repo agent is also included in the markup.