RTO Legislative Activity - Rent-to-own Consumer Tips

In tough economic times, rent-to-own can be a viable means for millions of American consumers to acquire appliances, furniture, electronics and computers, according to an article on MSNBC.

(MSNBC - original run date 02/19/2009)

Especially at a time when consumer credit is scarce and when existing credit lines are being cut, the rent to own transaction can be especially useful to the credit-challenged because it never incurs debt or requires a credit check. Additionally, the customer is never obligated to make the next payment and can return the product at any time for any reason.

However, the transaction may not be right for everyone and customers need to use the option to their best financial advantage. Listed below are some rent-to-own tips for consumers.

1) Shop around. The rent to own industry is very competitive and will bend over backwards to attain your business, so use this fact to your advantage.

2) Assess your payment options. Use the 90-days-same-as-cash option, if possible. If you make the payments according to contract, in 90 days you'll have a refrigerator -- or other home product -- at an affordable price in the market that is significantly cheaper than paying over time with a credit card.

3) If you cannot fulfill the three-month option, choose the rent-to-own plan that's right for you. The final price will still be less when payments are fewer. Some rent to own companies offer 180-days-same-as-cash plans.

4) Exercise the early-purchase option. The early-purchase option can reduce the total rent-to-own price by 50 percent of remaining payments.

5) It's about flexibility, but "least/shortest" is cheapest. Choose the least number of payments over time to save considerable money. Rent-to-own stores offer the flexibility of choosing your own payment plan.

6) Ask about payment-reinstatement rights. Make sure the rent-to-own company offers a payment-reinstatement option. If you return a product for any reason then at a later date you can reinstate your previous payment history toward final ownership of the product. Most state rent-to-own laws mandate a payment-reinstatement option and some stores offer a "lifetime payment reinstatement" option.

The Association of Progressive Rental Organizations (APRO) has spent more than 25 years improving rent to own business practices to become one of the most vibrant consumer industries in America. For more information on rent to own, visit www.rtohq.org or contact APRO Public Affairs Director Richard May at 800.204.2776, ext. 104.