Aarons - Do people actually go to these stores?

[Roger Wilco]

So I got a flyer in the mail recently from this Aarons chain; apparently they have 1,800 stores across the country. I was looking at the prices, and they are all ludicrously high. Am I missing something here?

https://www.aarons.com/p-1938-playstation-4-with-sony-vr-batman-game-bundle.aspx

A PS4 VR bundle. After two years of payments, it's yours for $2,500 dollars... Even if you don't lease it, it's going to be $1500 dollars.

Is this kind of thing legit, or even legal? Who would buy this?

Moved from Hot Deals.
admin allisolm

 

[MagnusTheBrewer]

So I got a flyer in the mail recently from this Aarons chain; apparently they have 1,800 stores across the country. I was looking at the prices, and they are all ludicrously high. Am I missing something here?

https://www.aarons.com/p-1938-playstation-4-with-sony-vr-batman-game-bundle.aspx

A PS4 VR bundle. After two years of payments, it's yours for $2,500 dollars... Even if you don't lease it, it's going to be $1500 dollars.

Is this kind of thing legit, or even legal? Who would buy this?

Someone who doesn't have enough money up front.

 

[highland145]

Someone who doesn't have enough money up front.

That and "I must have it NOW."

 

[Riverhound777]

It really is a disgraceful business model. I've never known anyone who actually shops at these rent to own type stores, so not sure who actually does, but obviously lots do.

And guess what, it's spreading, albeit in a more subtle way. It's all about steady, reoccurring income. All these low-cost monthly alternatives these days are just the next version of this. You don't need to buy anything now, it's all a low monthly payment. Cloud subscriptions, leasing cars, phones, computers, etc.

 

[NoTine42]

They, or stores like them, advertise that you don’t need credit, and you get free delivery and “service”.

Im guessing they are popular in the same areas as payday loans.

Years back, a co-worker was talking about getting a big screen TV from a rental place (back when they were $1500+). I think he had a divorce and/or bankruptcy so rental is how he “financed” it.

Overall the rental seems to be a great way of ensuring you never have money left to spend.

 

[Darwin333]

Someone who doesn't have enough money up front.

That and "I must have it NOW."

And have no credit. I have a few employees who rent to own half their damn house. I know because of the calls we get looking for them when they miss their payments for long enough.

It is insane how much they pay for the crap. They could use the money they spend on rent to own and outright buy at least one thing every month but I guess they think they need everything right now! That is until they can't afford the payments because big surprise they got stupid with their money and half of their house gets repossessed. It's awesome for the company, the items have long been paid for and now they get to sell or rerent the stuff.

 

[highland145]

And have no credit. I have a few employees who rent to own half their damn house. I know because of the calls we get looking for them when they miss their payments for long enough.

Typically a week around here.

 

[AMDisTheBEST]

It as good a business model as multilevel marketing. Donald Trump would agree with me.

 

[Darwin333]

Typically a week around here.

You rent to own a lot of stuff?

 

[Exterous]

You rent to own a lot of stuff?

Not quite but he's along the same "destroyer of dreams" business model

 

[highland145]

You rent to own a lot of stuff?

Nope. Not my industry unless you count renting $$.

Regardless of the rate, rent to own is a tough business. If the customers decides to keep the property and not open the door, the company is SOL. The magistrates will not give a forced entry. If they do pick it up...yuck...people are nasty. German cockroaches love electronics....

 

[highland145]

Not quite but he's along the same "destroyer of dreams" business model

That has a nice ring to it. Wonder if I can get a custom title?

 

[AdamK47]

Poor people making poor decisions that keep them poor.

 

[dave_the_nerd]

Poor people making poor decisions that keep them poor.

Well it's not like they'll ever be more than slightly less poor.

 

[VirtualLarry]

LOL. Should I mention my "poor" friend, that sold a Gaming PC (*entry-level, to be sure, but it can play @1080P), $25/mo for two years ($600). Since he's my friend, that's just the cost of the PC, no markup, no finance charges. Some people will probably tell me that I'm doing this wrong, and I probably am. I should probably be charging him more, since I have to travel to his place to pick up the money.

If I were running one of these rent-to-own places, I probably would have / should have charged him $1000-1200 for it. Oh well. Color me honest. (Edit: Or dumb? Or both?)

 

[highland145]

LOL. Should I mention my "poor" friend, that sold a Gaming PC (*entry-level, to be sure, but it can play @1080P), $25/mo for two years ($600). Since he's my friend, that's just the cost of the PC, no markup, no finance charges. Some people will probably tell me that I'm doing this wrong, and I probably am. I should probably be charging him more, since I have to travel to his place to pick up the money.

If I were running one of these rent-to-own places, I probably would have / should have charged him $1000-1200 for it. Oh well. Color me honest.

I bet you'll have a lot of "friends" if you advertise that deal.

 

[Darwin333]

Nope. Not my industry unless you count renting $$.

Regardless of the rate, rent to own is a tough business. If the customers decides to keep the property and not open the door, the company is SOL. The magistrates will not give a forced entry. If they do pick it up...yuck...people are nasty. German cockroaches love electronics....

For being such a tough business there sure are a fuckload of them around. I didn't realize they were SOL if the people just don't open the door, I'd think that more people would make the first payment and then just keep the big ticket item they just rented. It's not like they give half a shit about their credit or they wouldn't be renting to own in the first place.

 

[Darwin333]

LOL. Should I mention my "poor" friend, that sold a Gaming PC (*entry-level, to be sure, but it can play @1080P), $25/mo for two years ($600). Since he's my friend, that's just the cost of the PC, no markup, no finance charges. Some people will probably tell me that I'm doing this wrong, and I probably am. I should probably be charging him more, since I have to travel to his place to pick up the money.

If I were running one of these rent-to-own places, I probably would have / should have charged him $1000-1200 for it. Oh well. Color me honest. (Edit: Or dumb? Or both?)

Probably closer to $2,000 and yeah you are actually losing money on that deal but you did it as a favor to a friend so if it's worth it in your mind then it's worth it.

 

[highland145]

For being such a tough business there sure are a fuckload of them around. I didn't realize they were SOL if the people just don't open the door, I'd think that more people would make the first payment and then just keep the big ticket item they just rented. It's not like they give half a shit about their credit or they wouldn't be renting to own in the first place.

Depends on the state on forced entry. We don't have garnishments in S.C. either. Persistence and a sweet disposition win the day.


Previous employer, we sold a car to a guy and financed it for him. He hid the car and stopped paying. Said he didn't know where it was. Magistrate said he'd give us a judgement. Dickhead. And people wonder why buy here/pay here charge 30%+.

 

[Stopsignhank]

This kind of reminds me of the mentality of the workforce here. They are generally in the lower portion of the economic bucket and not the smartest knives in the drawer. I gave them a presentation about 401Ks. More than one person said this to me, "what can I do with my money? I don't want to invest in the stock market because I don't want to lose money."

 

[OutHouse]

even when i was poor the thought of using a RTO place never crossed my mind. i never understood why people used them, thrift stores were always good places to scrounge for stuff we needed.

 

[Darwin333]

even when i was poor the thought of using a RTO place never crossed my mind. i never understood why people used them, thrift stores were always good places to scrounge for stuff we needed.

Right there with ya bud, a few milk crates covered by some fabric I found at a thrift store made a good enough entertainment center until I could afford an actual one... with a decent TV to go with it. I guess it's because I've always been good with math but I got the same flyers and could have easily afforded the monthly (or weekly as some advertise) payments I did the math in my head and said fuck that shit.

 

[AdamK47]

even when i was poor the thought of using a RTO place never crossed my mind. i never understood why people used them, thrift stores were always good places to scrounge for stuff we needed.

People want to live larger now. They don't want to save and wait for it.

 

[Exterous]

even when i was poor the thought of using a RTO place never crossed my mind. i never understood why people used them, thrift stores were always good places to scrounge for stuff we needed.

Heck yeah. I still use my $25 thrift store desk. Its large enough for two 24" monitors, has a long and wide keyboard tray, a drawer and shelf off to the other side and everything is real wood. My wife doesn't like the look of it but I'm keeping that thing (and its heavy as hell so getting it down the stairs would suck). The 'desks' today are small and made of cheap materials unless you really want to spend some $$$

We also still have and use two octagonal end tables we refinished and put hardware on and a set of 4 chairs we re-upholstered and painted. So thats like $125 on furniture and supplies for stuff thats lasted over 10 years.