How expensive is it to buy rent-to-own furniture?
Short answer: VERY EXPENSIVE!
I was on the Rent-A-Center website and I found this Ashley sofa and loveseat:
I called up a local Rent-A-Center and asked the guy how much this set goes for. He told me that just the sofa and loveseat rents for $26.99 per week for a 104 week term. So, the total purchase price for this sofa and loveseat (WITHOUT tables) would be $2,806.96! That sounds like a lot but I needed something to base that number off of so I called our local Ashley furniture store to get their prices for the EXACT same sofa and loveseat. Their prices were $549 for the sofa and $499 for the loveseat for a total of $1,048.
Now, here’s what the numbers look like using $1,048 as the purchase price:
So, paying $26.99 for 104 weeks, works out to a 121.89% APR!
I think if it were me, I would sit on the floor until I had enough money to pay cash! Think about it. At $1,048, it would take a person 39 weeks to save up enough money to pay cash for the furniture if they saved $26.99 per week. Patience can save you a ton of money!
Why would anyone want to rent furniture?