2. Means of Purchasing

c. Rent-to-own

You may have seen - or even used - these stores. They advertise with a sign that says “Flat screen TV only $29.95” in great big letters.  However, below in much smaller letters, it says “per week for 200 weeks.” The way it works is that you pay the store to rent the item until you have paid them so much that you have fulfilled your rental agreement, at which time you’ve bought the item – often you’ll end up paying as much as twice what the item is worth. Often the items have been rented out to others before you rent them, so they’re not even new. If at any time during the rental period you can’t make your payments, they can take the item back. Remember, until you fulfill your agreement, you’re just renting the item from them and don’t really own it. 

This chart describes some of the advantages and disagvantages of the different means of purchasing.