Due to high monthly payments and an additional 10 percent monthly service charge, leasing to own from Aaron's over 24 months costs about twice as much compared to purchasing outright with cash or a credit card. When negotiating the terms of agreement, lessees can opt for higher payments over a shorter term for a lower overall cost, or lower payments over a longer term for a higher one.
Aaron's doesn't charge interest but instead wraps the cost into a simple monthly payment plan; however, the inflated original price, plus the 10 percent Aaron's Service Plus (ASP) fee added to payment plans, can work out to the equivalent of a 100 percent interest rate, or more. At the end of a 24-month lease, a lessee will usually have paid double, and as much as triple, Aaron's lump sum price of the furniture.
There is an even greater discrepancy between leasing to own from Aaron's and purchasing from another large furniture retailer, because Aaron's charges at a premium for its services offered and risk taken. For example, a bed that costs $3,000 outright at Aaron's costs about $5,000 overall with a 24-month payment plan, but a similar bed from another retailer costs less than $2,000 according to Cockeyed.com.