The Rent Try Buy model may seem attractive at first, especially when they offer a 55″ HDTV for JUST $19.99 per week.
But lets do some simple calculations on this and we’ll find that it’s over 2 years (104 weeks). Meaning we’re up for $2080 for that 55″ HDTV. It’s not looking a great deal anymore.
What’s more the brand and quality of the products on offer are not always the best brands or best models.
More often than not what’s on offer is their own brand or very low end known brands. These brands and models are simply not made to last.
Todays TV’s are designed to be refreshed every 2 years, there’s always new technology, larger screen sizes and more clarity.
So it would seem convenient that your Rent Try Buy contract finishes at the same time, so you refresh and continue with another contract.
Here’s the problem.. after a quick glance at Kogan and JB HiFi it’s clear you can buy a new 55″ HDTV with Samsung panel for $499. Meaning im paying $1581 too much over the 2 years.
Why on earth would you want to continue with another contract in 2 years time. If anything you should be pushing your Thorn TV for a total of 8 years to simply pay the same price you could of for that $499 TV.
Rental places prey on the poor and people with financial difficulty. They know that it’s quite difficult for people with financial issues or lower incomes to buy certain appliances or obtain a loan to buy those appliances. But paying on average 3 to 4 times the amount for an inferior item is not the answer.
There is a twist on the old Rent Try Buy model, it’s subscription based allowing you to rent someone else’s unused appliances at a much cheaper price with no lock in contracts. The only thing you cannot do is own the appliance in the end. Check out https://2ndlease.com.au
We think places like 2nd Lease serve a great purpose in allowing you to obtain the appliances you need at a low cost, allowing you to save the money to buy your own appliances in the long run.
The only thing that could beat ownership of appliances right now is a pay per hour usage model. Until such a model exists Im going to stick to buying my appliances out right.
From what we’ve seen if you are wanting to exit your current Radio Rentals contract, it seems you would need to pay out the first year as an exit fee. If you are planning on paying the exit fee make sure you consider this in your calculations as it could turn out to be not worth exiting.
However if you cannot afford to keep the appliances you can call Radio Rentals and say that you wish to surrender the items. Provided you legitimately cannot afford the items anymore you will be able to exit the contract at no cost.
Different appliance rental places will have varying contracts, it’s worth reading the terms and conditions of the contract before taking any action.
It’s important to do a little shopping around, write down models, prices and specifications. Check out other appliance rental places, along with Kogan, JB HiFi, 2nd Lease, Gum Tree and eBay.
Now do some calculations, work out how long the lease is and how much they want over that period. If you are paying more than double the cost for the same item by renting it, you’re paying too much.
We’re almost into a new year and now is a good time to review all this and start saving. Lower your weekly outgoings by being smart. To be honest we end up with a better TV for a quarter 1/4 of the cost and yeh we’re happy about it.