6 Questions to Ask About Rent-to-Own
Some Rent-to-Own companies have had a bad rap sheet in the media; it’s almost as dramatic as a day time soap opera. But it doesn’t have to be that way; the key issue stems from rent-to-own providers who do not properly educate their customers early on. This leads to a lot of confusion and in some cases nasty surprises later on. By simply having a solid set of questions to ask ahead of time, you can truly understand a rental purchase and how it benefits you. Here are five great questions you should be asking:
1. What payment is required up front?
Typically in a rental purchase experience, you will be asked to pay the first portion of your rental up front. This can range from 2 weeks to a month depending on your rental order. Be sure to ask what other fees may be included. This is where your rental fee can creep up with unforeseen administrative and processing fees. Check price cards for additional information on the item you are considering.
2. What is my rental term?
Understanding the term of your rental is important. This is what dictates how long you are expected to pay and when you are expected to pay it. You should also ask if there are conditions that may affect your rates, such as late payments.
3. Is there an early pay out option?
If you want to save some money, ask about early pay out options. Many companies will offer you a chance to pay off your rental in a shorter period of time without accruing additional rental fees. For example, at Rental City, we offer you ‘Up to 120 Days Same as Cash’. If you pay off your rental within that period, you pay no rental fees for the term period. This isn’t always an option when you are looking for smaller monthly payments, but it’s a good option for lower priced items you may be looking for. You should also ask about pay out options after any preliminary periods. Some companies charge additional fees or penalties outside of any advertised early pay-out windows.
4. If you need to cancel, what are the penalties?
Some companies charge cancellation fees, pick up fees or restocking fees if you decide to end your agreement early. Life happens, and sometimes payments aren’t viable. Rental City does not charge cancellation penalties, and in fact offers a budget hold program if you just need a short term break, but want to continue your rental.
5. What else do I get?
Rent-to-Own is a service based industry. You should be asking what else the company will do for you as a consumer. Many companies will charge you for some of the perks and services you may expect. Be sure to ask about things like delivery, repairs, loaners, loyalty programs and more.
6. Read the Fine Print
We hate fine print as much as the next person, and many companies will hand you pages and pages of it that make you feel like you need a lawyer present before signing. Be sure to take the time to read the agreement. Never be afraid to ask questions about what you don’t understand.
You wouldn’t sign for a car or a house without asking questions, you should do the same with rental purchases. Please visit our benefits page to understand how Rental City can help Make Life Affordable for you!
Still have questions? We’d be happy to help you understand our products and services. Simply contact the store nearest you.