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Ranking rent-to-own prices
By Dana
Dratch • Bankrate.com
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:
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Total cost:
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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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