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Ranking rent-to-own prices

Curious about how the cost of rent-to-own ranks against its retail competition? Bankrate.com compared prices on merchandise in the same metro area on the same day for one major rental chain and a popular retail equivalent. Here's how the costs shake out:

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Whirlpool washing machine (delivered), extra large capacity with four wash-rinse cycles.

Buy from:
Total cost:
Consumer pays off merchandise in:
Rent-to-own, if paid off within 90 days $636.54 Three months
Rent to own price, at $15.74 a week for 90 weeks $1,416.60 21 months
Retail (equivalent has six wash/rinse cycles) $480.43 Immediately
Retail price with seller financing (21 percent APR making monthly payments equivalent to rent to own) $518.68 Eight months

 

Philips Magnavox 27-inch television
Buy from:
Total cost:
Consumer pays off merchandise in:
Rent-to-own, if paid off within 90 days (free delivery) $628.53 Three months
Rent to own price, at $18.33 a week for 61 weeks (free delivery) $1,118.13 14 months
Retail $304.86 Immediately

Retail price with seller financing (four-year financing with 14.5 percent rate)

$403.56 Four years

 

Dell computer (delivered), with 15-inch monitor, 1.1 gigahertz processor, Windows XP, CD ROM, 40 gigabyte hard drive and 56K modem

Buy from:

Total cost:
Consumer pays off merchandise in:
Rent-to-own, if paid off within 90 days $1,956.04 Three months
Rent to own at $48.79 a week for 91 weeks $4,439.89 21 months
Retail (equivalent includes 1.3 gigahertz processor, a free printer, scanner or digital camera, six months free Internet service and one-year service warranty) $851.14 Immediately
Retail with seller financing (four-year plan with 13.9 percent to 26.9 percent APR) $1,114.37 -- $1,398.28 Four years

*All prices include 7 percent sales tax. Rent-to-own prices include liability waiver.

Compiled by Dana Dratch

-- Posted: June 11, 2002

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