Last July, as a congratulatory gift for securing my first steady job, my parents surprised me with a 36-inch flat-screen television. I walked into my room after a 10-hour shift to find the TV sitting on my dresser. I immediately began unhooking my boxy 19-inch and installing the upgrade in its place. At the time, I was happy, excited, thankful, etc. But at the risk of sounding ungrateful, I now wish my parents would have just asked me first.
I mean, this was certainly the kind of TV I wanted. I did express interest in buying a new TV, preferably a flat-screen. But you see, this television was—brace yourself—rent-to-own! This means that a weekly payment of $18.01 has to be paid towards this TV. Every Saturday. At the moment, I’m still making these payments and, according to my receipt, I’ll be making them for another eight or nine months.
So let’s break this down. Wal-Mart sells an RCA 37” LCD flat-panel TV for around $350. Best Buy has a Westinghouse 37” for $380. When taken into consideration, those are pretty decent prices for a television set that you can also use as a computer monitor, has a built-in digital receiver, is wall-mountable, etc.
I can’t remember the exact date I began making these payments, but I could somewhat accurately guess that it was last July. That was over a year and five months ago, which evens out to around 67 weeks. This matches up to my receipt, so we’ll go with that. 67 weeks X $18.01 = $1,206.67 (Well, would you look at that; I HAVE ALREADY PAID OVER A THOUSAND DOLLARS FOR THIS TV). Nevertheless, let’s not forget about the fact that I still have 37 payments left, here. That’s another $666.37 (a hellishly high number), bringing my total up to $1,873.04. Wow.
As a side note, I’d like to mention how ANNOYING it is to pay for something that costs X amount of dollars and ONE PENNY. There are four individuals at RentOne (the rent-to-own company) who tend to the register. An accurate summation of this situation is that 75% of the people who work here are decent human beings and will always wave the penny and simply give me two dollars change. Yet the other 25% consists of some neurotic, by-the-book old guy who insists on giving me a dollar bill and 99 cents back. He also can’t count change very well, so he’s not quick about it, either. How does this man sleep at night? Back to the issue at hand…
In conclusion, I would advise you to never fall for the “allure” of rent-to-own. Instead of shelling out weekly payments, just dump that cash into a savings account and save for whatever you wish to buy. That way, you’d earn a bit of interest, you can buy a cheaper item, and if you change your mind, that money is still yours.
All of that being said, my TV is rent-to-own, so I could take it back at any time. But none of the money I’ve already put towards the TV will be refunded. However, I could cut my losses now and save almost $300 by buying an entirely different (and bigger) television. What do you think?