Q:

How do rent-to-own computers work?

A:

Quick Answer

Rent-to-own computers require paying a small down payment, plus a weekly or monthly payment to the company. In return, the individual gets to keep the computer at home and use it at his leisure. The renter either returns it when he no longer needs it, or he continues paying these payments until the computer is paid off.

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Full Answer

Some rent-to-own companies also provide the option of paying the remaining full price, or a discounted price, when the renter wants to buy the computer instead of waiting until the end of the term agreement. If the renter makes late payments, he is assessed a penalty and his credit score may be damaged. If the renter gets too far behind on payments, the company has the right to get its computer back from him.

While this is a convenient option for people who don’t have the full price needed for a computer, the final costs are often higher than they would have paid for a new computer. The computer is typically used as other people have rented it previously. While the interest rates vary, the renter should compare the final cost to the cost of a new computer.

Rent-to-own companies typically offer different types of computers for rent, including laptops and desktop computers. They type of computer is also a factor in the monthly or weekly payment amount.

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