Current Events > Do people actually fall for "rent to own"

(+) Yeah! (+)

Like Jesus Christ there couldn't be a more obvious scam you pretty much lose all of your money if you're even late on any payment no matter how much you put into it I mean just look at the fine print and pretty much is self-explanatory to anyone with half a brain the fact that they're praying also many lower-income people with this Across the Nation is troubling to say the least

Discuss
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I can't, you haven't ended a sentence yet. Waiting for more.

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you should rent to own some punctuation papa...

You talk as if the entire property market isn't one big scam run on a whole population for centuries.

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Try not missing payments. It easy if you dont live beyond your means.

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mooreandrew58 posted...

Try not missing payments. It easy if you dont live beyond your means.

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Tc letting us all in on the cold truths from his parents basement, god bless his soul

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Xavier_On_High posted...

I mean it's true. Worst scenario you miss a payment and it was just like you where only renting. Nothing wrong with renting. But if you aint confident you can make your payments then yeah maybe its a bad idea. Bad idea with even regular renting

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I could pay $499 for a 4K TV, but that sounds so expensive. Why don't I just make 18 easy payments of $40 instead? That number is lower, so it must be better.
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UnholyMudcrab posted...

I could pay $499 for a 4K TV, but that sounds so expensive. Why don't I just make 18 easy payments of $40 instead? That number is lower, so it must be better.

Peoples monthly incomes differ so of course something they see as more affordable is more attractive

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mooreandrew58 posted...

UnholyMudcrab posted...

I could pay $499 for a 4K TV, but that sounds so expensive. Why don't I just make 18 easy payments of $40 instead? That number is lower, so it must be better.

Peoples monthly incomes differ so of course something they see as more affordable is more attractive

Bro shut the hell up this is clearly targeting people with lower incomes for that very reason if they default even a little bit literally all their tens or hundreds of thousands will be for nothing it's a fucking scam sounds stupid try to defend it
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Trill__Cosby posted...

Bro shut the hell up this is clearly targeting people with lower incomes for that very reason if they default even a little bit literally all their tens or hundreds of thousands will be for nothing it's a fucking scam sounds stupid try to defend it

He never said it was targeting poor people. Even still its fucking stupid to take on something you aren't confident you can afford. I mean you sign a piece of paper stating you are fine with the price then wanna play victim? Whos the real idiot in this scenario?

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i'm not certain your premise is good

i just bought a house. the previous owners were renting it for 8 years before buying it and renovating it. they owned it for 5 years before selling it.

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Do they even have that anymore? I thought they went away like the first time buyer's programs.

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mooreandrew58 posted...

He never said it was targeting poor people. Even still its fucking stupid to take on something you aren't confident you can afford. I mean you sign a piece of paper stating you are fine with the price then wanna play victim? Whos the real idiot in this scenario?

Or they could afford it and then some shit happens and they miss it. Life happens.

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Are you talking rent to own like houses or like personal property?

Rent to own houses, while often a scheme, can be beneficial to both parties.

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ExtremeLuchador posted...

I thought they went away like the first time buyer's programs.

krazychao5 posted...

i'm not certain your premise is good

Rent-to-own houses aren't really a thing, regardless of repeated attempts at it.
This is about TVs and furniture and stuff. Or at least I think so. OP is a bit rambly and ranty.

Let's go to Rent-a-Center and compare. Here's a sofa for $30/week for 104 weeks:
https://www.rentacenter.com/en/furniture/living-rooms/sofas-and-sectionals/benchcraft-graftin-teak-3-piece-sectional-91102-3rfc/p/200010389

Here's a similar one; same manufacturer (Ashley-Furniture), same number of seats, same material, similar size for $2,114.99 + ~7% tax =~$2,300:
https://www.ashleyfurniture.com/p/ashlor_nuvella_4-piece_sectional_with_chaise/APK-46005-R4.html?cgid=sectional-sofas

$2,300 / $30 =~ 77 months = ~6.4 years.

We all know furniture has no resale value. But let's be generous and you can sell it for $300, bringing the net cost of that furniture $2000. Given this, if you intend to live in an area temporarily for, say, 3-5 years, it makes sense to just rent it vs. buying it.

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I csn see the benefits under some circumstances like being unsure if you're be living within a certain region for long term. And if things change down the line you can just very easily if the home is rented. But if it never happens then you're just continue renting until the home is finally yours.

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IdiotMachine posted...

Let's go to Rent-a-Center and compare. Here's a sofa for $30/week for 104 weeks:
https://www.rentacenter.com/en/furniture/living-rooms/sofas-and-sectionals/benchcraft-graftin-teak-3-piece-sectional-91102-3rfc/p/200010389

Here's a similar one; same manufacturer (Ashley-Furniture), same number of seats, same material, similar size for $2,114.99 + ~7% tax =~$2,300:
https://www.ashleyfurniture.com/p/ashlor_nuvella_4-piece_sectional_with_chaise/APK-46005-R4.html?cgid=sectional-sofas

$2,300 / $30 =~ 77 months = ~6.4 years.

We all know furniture has no resale value. But let's be generous and you can sell it for $300, bringing the net cost of that furniture $2000. Given this, if you intend to live in an area temporarily for, say, 3-5 years, it makes sense to just rent it vs. buying it.

Wait. That's 77 weeks, not months. So that means 1.5 years. Yea, nvm... scratch what I said. It only makes sense if you intend to rent for a few months, maybe like staging for a house.

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yutterh posted...

Or they could afford it and then some shit happens and they miss it. Life happens.

That happens with anything. What's the difference? For me id probably just get kicked out as I simply rent.

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IdiotMachine posted...

It only makes sense if you intend to rent for a few months, maybe like staging for a house.

...or dressing up a flipper house.

I guess that's the same damn thing. oops.

Trill__Cosby posted...

You sound dumb. Rent to own homes are the biggest thing going right now. No one is talking about fucking furniture and TVs

lol

I've actually never heard of "rent to own" homes being big, but rather "lease to own" homes.

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Never heard lease to own. In East Coast cities rent-to-own is huge Jay-Z and Will Smith just started up some huge fun to kick-start more of these developments across the region
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IdiotMachine posted...

lol

I've actually never heard of "rent to own" homes being big, but rather "lease to own" homes.

Might be a regional thing.

Seattle craiglist
https://seattle.craigslist.org/search/hhh?query=%22rent+to+own%22&excats=2-16-1-20-1-1-17-7-34-22&availabilityMode=0&sale_date=all+dates

53 results on "rent to own"
15 results on "lease to own"

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Pretty sure it's interchangeable
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In my experience, rent-to-own homes isn't very common. I did it once with a commercial property. The owner and I made an agreement where my rent would go towards purchasing the building. If I closed down the building or moved away before paying it off, then they got to keep the building and sell it and the rent I've paid would just be rent. There was really no downside. I was already paying rent. Owning the building would be a bonus if I paid long enough. I eventually paid off the building and sold it like a few months later at double the price lol.

Rent-to-own property is more common, like TVs and furniture. This is traditionally an option for people with bad credit who can't get traditional financing or a credit card. It's better than layaway as they get to enjoy usage of the item in question while they pay it off.

But yes, the high risk involved with running a rent-to-own business results in high usage fees and a strict, zero-tolerance policy. Most people that use the business don't know what they are getting into and tend to lose out on it. But it does work for a certain subset of the population that can pay the monthly bill every month.

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I did once *smh*

Cocytus posted...

I did once *smh*

What happened
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Zanzenburger posted...

But yes, the high risk involved with running a rent-to-own business results in high usage fees and a strict, zero-tolerance policy. Most people that use the business don't know what they are getting into and tend to lose out on it. But it does work for a certain subset of the population that can pay the monthly bill every month.

The problem is if those people are that financially stable they need to just save up a damn down payment to put on a house like everybody else instead of going for this goofy rent to own stuff
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Most rent to own I hear about have a slightly higher rent. Like market rent is $1400, you pay $1700 or $300 extra a month. In 5 years, $200 of that $300 becomes (part of) the down payment of the renter wants to buy. The owner keeps $100 because they are freezing the price at whatever was agreed to at the time (normally a bit higher than current but lower than projected in 5 years).

Quite a few people I worked with at Boeing got them between like 2005 and 2009. Most didn't stay long enough for the "down payment" so they just paid more than market rate.


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Trill__Cosby posted...

The problem is if those people are that financially stable they need to just save up a damn down payment to put on a house like everybody else instead of going for this goofy rent to own stuff

I can see why people would do it if they don't want to commit. Consider these two scenarios for someone who is living in a city where they don't know if they'll want to stay.

A) Rent a place for two years, decide they like the area; put a down payment towards the purchase of a house. Two years of rent are gone.
B) Rent a place for two years under a rent-to-own agreement, decide they like the area. Continue making the rent-to-own payments as the two years already counted towards the house purchase. Apply for a mortgage and pay the rest off.

Now, let's assume a person lives in an area for a year before moving out for a job or whatever.
A) If they immediately buy a house and then move in a year, they will have huge tax implications when they sell, plus paying two sets of closing costs in a year, and deal with the risk of a poor seller's market. House-buying isn't recommended if you don't plan to stay a few years.
B) If they rent-to-own and decide to leave, then they just leave and don't keep the property. It would be the equivalent of just renting, with the added benefit that the rent payments could have counted towards the house purchase if they chose to stay. But they don't really lose anything by leaving that they wouldn't have lost in a straight renting agreement.

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I know somebody who can't ever return to Ohio because of a warrant over Rent-a-Center furniture.

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UnholyMudcrab posted...

I could pay $499 for a 4K TV, but that sounds so expensive. Why don't I just make 18 easy payments of $40 instead? That number is lower, so it must be better.

Jesus fuck man.

I really feel for people who find themselves actually doing that. Same as when I drive by buy here pay here car dealerships on the way to work. How could anyone sign those loans? :(

ExtremeLuchador posted...

I know somebody who can't ever return to Ohio because of a warrant over Rent-a-Center furniture.

Lmao
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anybody know of people still ordering from Fingerhut?

my grandma does sometimes and it drives me nuts. but at least she'll occasionally ask me if I can order something on Amazon.

my mom just barely learned how to order from Amazon on her own, but she still looks at those old school, scheming ass magazines.
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XxKrebsxX posted...

Jesus fuck man.

I really feel for people who find themselves actually doing that. Same as when I drive by buy here pay here car dealerships on the way to work. How could anyone sign those loans? :(

Yeah stuff like that is stupid cause you really don't need it. Rent to own though if you where gonna probably be renting anyways and the price is right I don't see a problem. Basically I just view it as renting with a possibility I end up owning it. I wouldn't go looking for it though

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I know a lot of people with a "life is short" attitude so they don't care about debt as long as it doesn't make them homeless. I have many relatives that dropped dead in their 50s so I can see their point.

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ZevLoveDOOM posted...

you should rent to own some punctuation papa...

Lmfao

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Trill__Cosby posted...

What happened

Long term ago. Some living room furniture.

It's a better option than just renting for people who can't afford to buy a house.

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TerraSeeker posted...

It's a better option than just renting for people who can't afford to buy a house.

Sure it is.
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its good for musical instruments

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