Do rent-to-own stores take advantage of low income people?

Question

I get those ads from Aaron's and Rent-a-Center in the mail and if you add up the weekly payments the end price is insane - usually about 3x the retail cost. They have an HP netbook in there and the weekly payments would come out to $800 in the end when WalMart carries them for $298. Are they just taking advantage of low income people? Most of the stuff in there isn't even necessities.

Answer 1

Yes.

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Answer 2

Every time I see questions like this I wonder why everything has to be about money?



"They charge 800 bucks for a HP netbook? WTF? they must be taking advantage of people!!!!"



But hey, you wanna talk about money? Go to Sears, Find a Whirlpool Duet washer and dryer. On a good day on sale your talking almost $2000 bucks. Now get a sears credit card and charge that set. 16% interest and a minimum payment of 50 bucks a month. Not to bad. Now, ask them to tell you what your going to pay in total for that set with all the interest and extended warranties. Suddenly that $2000 washer and dryer is costing you alot more than you thought.



Now, what happens if you lose your job? Better make that sears payment!! Creditors report to the credit bureaus, thats why they are called creditors. You don't want that bad mark on your credit report do you? That can follow you for 7 years or more. What? I wanted to buy this house and because I was late for 3 months on my sears card my 150,000 home loan is going to be a full percent or two higher interest costing me potentially thousands more in the long run?



"Maybe I shoulda went to Rent A Center?"

Answer 3

Not just low-income, but also people with little or no credit use rent-to-own stores. But not necessarily taking advantage of. There is a high risk factor- Think of all the furniture and items they wind up repossessing after only a few payments have been made. These repo'd items May or May Not be in decent condition. And think of how many people get a computer, make 3 payments and then skip town. So really, they just paid 95.00 for a computer!

Answer 4

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Answer 5

I'd say they do take advantage of people who can't really afford the stuff they rent to them. But the people who rent are adults and hopefully can add. So if they don't want to pay too much, they can instead save their money for a while and then buy an item. If they are too undisciplined to control themselves for a while then they rent. It's a two way street, people can't take advantage of you if you don't let them.

Answer 6

They do take advantage of low income people that resort to using rent to own. However they are very handy for someone that is transferred temporarily somewhere and does not want to buy all the things they will need until they return home.

Answer 7

They're not taking advantage, they're just turning a profit. Nobody has to go to one of these stores. They can save up the money and buy outright. The people that go there value possession of the item above the extra cost.

Answer 8

Rent-to-own stores take advantage of EVERYONE. If you don't have the cash, and you don't have the credit, then you have to pay if you want the things that require the cash or the credit.



This question is like asking.... Do Payday loan shops take advantage of people who need cash quick?



The answer, to that question and to mine, a resounding OF COURSE!



end of line

Answer 9

Basically, my opinion is that people are allowing themselves to be taken advantage of when they go to these places to "rent & own" stuff they can't afford. Hence, the name being "rent to own"



Buy what you can afford & you won't be taken advantage of.



Save your $$$ to buy what you want, don't fall for that old scam called "rent to own" it's B/S from way back when!



It's called common sense.

Answer 10

they do those places know that there are things that we cant live without and do this to get money

Answer 11

yes it is called greed

Answer 12

they probably are b/c they are charging you more than what they are actually worth