Is it Financially Better to Rent or Buy the Items You Need?

You have likely seen those commercials and advertisements out there that allow you to rent everything from sofas and beds to computers and dishwashers. If you are on a budget and cannot afford $600 to spend on a new computer, this may seem like a great deal. However, is it a good deal financially?  In order to find out, you will need to really think about how much you are going to use this item and what your financial picture looks like on a long term basis.

Renting Could Lead to Big Problems

Consider, for instance, that your family needs a new computer and you simply don’t have the money to put down on it. An affordable desktop computer may cost about $600 on average.  This can be a lot of money to spend if you are living paycheck to paycheck. However, you open up a newspaper and see an advertisement for a desktop computer starting at $25.99 per week for 48 weeks.  $26.00 a week seems like a great deal…but, did you do the math? When you break it down, you will be paying for this computer for almost a year. At $25.99 a week for 48 weeks, this $600 computer will actually cost you $1248…not really a great deal, is it?

This is only part of the picture.  In most cases, when you choose a rental over buying, you will find that you could end up paying $300% or more over the payment time frame. This is the same story no matter what you buy, from a refrigerator to a sofa. On top of all this, if you miss just one payment, it is extremely difficult to get out of the mess you will put yourself in.

Financial experts say that it is best to come up with an alternate plan. If nothing else, even a high interest credit card will be a better choice than renting an item like this. If you are looking for an even better choice, you could consider a car title loan from Embassy Loans. You can easily get the $600 for the family computer in a matter of hours. Contact them to find out more.