When it's time to move into a new home, sometimes cash is tight and furniture shopping is out of the question. For those with poor charge and small saved for home comforts, rent to own is an option to pull through lean times. You will find rental centers across the nation, with some rental companies even offering furnishings throughout e-commerce websites. However, most consumers still get their rent-to-own furnishings and appliances the old-fashioned way–by seeing a retail location, selecting the furniture and having it delivered.
Rent-to-own furniture shops are usually situated in suburban or middle-class neighborhoods. They may be in freestanding or a strip mall. Like every retail business, rent-to-own stores position themselves in neighborhoods with a high concentration of probable customers. Before, this has meant less-affluent customers, but the numbers might be shifting. MSN Money’s Karen Aho writes that although”rent-to-own shops have traditionally been a staple of low income neighborhoods, the credit crunch has produced new customers: households making above the U.S. median income of $50,000 a year.”
A supermarket shares appliances, furniture and small electronics, including desktop and notebook computers, DVD players and televisions. They are usually medium to large shops and might not have their inventory on the ground simultaneously because of repairs, cleaning and maintenance between leases. A well-merchandised supermarket exhibits its items much as a department store to appeal to possible renters. Furniture will be organized in sample rooms, and appliances will be in their own neat section. Some shops also feature a desk devoted to financial services such as payday debit and credit cards.
The Way Rent to Own Works
Once the customer has chosen his items, the store will draw up a leasing contract that contains a breakdown of the cost per week, the entire cost of the leasing and other contract details. Depending on the store, there can be a”90 days same as cash” option. This price tag, while cheaper than paying the normal long lease term, will still be a substantial percentage over regular manufacturer’s list price. There’s no credit check necessary with rent to own. Rather, the customer must show proof of income or employment. The customer pays a deposit, takes delivery of the items and creates a monthly payment. In the close of the contract, the merchandise is his to keep.
Using a supermarket for home furnishings may seem simple, but the contract rarely reaches conclusion. High rates of interest and added fees generally become too much for your customer, who then gives up on their buy. Aho says that in 17 weeks,”three-quarters of rent-to-own customers have allowed the shop’s van haul the product away.” All money spent on the merchandise is property of the business, unless the customer wants to pick up her rental contract at a later date. If the renter attempts to stall repossession, there’s also the chance of embarrassing seizure efforts, harassing phone calls and loss of reassurance.
Rent to own has many benefits. For customers who are seeking to rebuild credit, some companies report successful invoice payments to credit bureaus, which strengthens a poor report. Repairs are included, which can be invaluable for appliances, and items arrive quickly. Contracts are elastic. If the renter can not cover the next month, he just returns the product with no hassle. Contracts are strictly monthly, without any penalties or penalties for early termination. While rent to own might have its detractors, these shops are useful to many who simply don’t have sufficient ready cash to buy creature comforts. If somebody is trying to find a inexpensive method to produce a nice living environment, rent-to-own shops can provide a viable solution that costs greater while fulfilling a need.