If you are strapped for cash this holiday season or anytime, you may consider rent-to-own or layaway. These are two very different animals for which you should know the differences before making a decision.
For larger ticket items like washers, dryers, flat screen TVs and home entertainment equipment, rent-to-own and layaway are both options that don’t require a large cash outlay up front. But, that is where the similarities stop. There are key differences between the two. First, with rent-to-own, you can take the item home the same day without any credit. With layaway, you may or may not need credit, but will definitely not be able to take the item home that day. With the holidays around the corner, this takes some of the fun out of putting money down on a gift.
Also, most layaway programs aren’t as flexible as rent-to-own. For instance, with most layaway programs there is typically a $5 non-refundable service fee on all contracts and a cancellation fee of around $10. Both the service fee and cancellation fee are usually collected up front and are not refunded if the merchandise is returned to stock due to missed payments. With most retailers, layaway merchandise will be returned to stock seven days after a missed payment.
Conversely, rent-to-own is much more flexible. Let’s take your local Hometown ColorTyme for example. If you’re looking for furniture, electronics, computers and/or appliances, ColorTyme will have it in stock and you can take it home the same day in most cases. With ColorTyme no credit is needed, and there are flexible low payment options, early purchase options and, of course, you can make an outright purchase the same day. ColorTyme also offers home delivery (same day option is available) and service repairs, if needed, at no extra cost. A full service loaner program is also included with every agreement to all customers. With layaway plans through retailers, once you finally get your product home, if it breaks you have to deal with the warranty plan, connected either to the brand name or the retailer. Many of these warranty plans must be purchased separately.
With ColorTyme, there are short and longer term rent-to-own plans available and professionals install, demonstrate and deliver everything at no additional cost. There are no penalties for returning merchandise and your investment doesn’t go away after you return the product. When you are ready, ColorTyme will set you up again with your product or a comparable product to the one you returned.
Although a layaway plan might seem like a good idea, it doesn’t compare to the flexibility or speed of delivery that ColorTyme rent-to-own plans offer. If you’re looking to bring home and enjoy a product right away, there is no comparison.
This entry was posted on Tuesday, December 15th, 2009 at 11:29 am and is filed under Benefits of Rent To Own. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.