Does renting or rent-to-own ever cost less than buying furniture?
Summary
Renting can, when you know you are leaving within a year or so, because delivery, setup and pickup come as one fee and there is nothing to sell or haul away at the end. Over several years, buying costs less. Rent-to-own is not really renting; it is a way of buying on installments, and the FTC warns it can cost twice the cash price.
Three ways to pay, side by side
| Rent (CORT) | Rent-to-own (Aaron's, Rent-A-Center) | Buy | |
|---|---|---|---|
| What your payments get you | Use of the furniture for the term | Use now, ownership after the last payment or an early purchase option | The furniture |
| Handing it back | Pickup is in the transportation fee | Return any time; past payments are not refunded | Not an option once the return window closes |
| Buying it later | After 50% of the lease or 3 months, whichever is longer; rent paid does not count toward the price | Early purchase option in the contract | Not applicable |
A year with CORT, in numbers
CORT's minimum lease is one month. Delivery, setup and pickup are one transportation fee set by your address and delivery date, and setup can happen in as little as 48 hours on weekdays.
CORT's own pricing page says a complete one-bedroom package on a 12-month lease typically runs $240 to $295 a month depending on the city, with single pieces from $150 a month. Twelve months of the package comes to $2,880 to $3,540 before the transportation fee.
The Customer Protection Plan adds 12% of the monthly base rent, $28.80 on a $240 lease. It covers damage or loss from natural disasters and extreme weather, and excludes theft, negligence and pet damage. A cat's claw marks on a rented sofa are yours either way.
The buyout rule is where renting and owning part ways. Because rent paid does not count toward the purchase price, a sofa you rent for six months and then decide to keep has cost six months of rent on top of its price.
Rent-to-own, read from the contract side
Aaron's says you own the merchandise only after making all the lease renewal payments or exercising the early purchase option. You can return it whenever you like, and if you are current you owe nothing further, but the payments already made are not refunded. Rent-A-Center describes the same structure and calls it a rental-purchase agreement.
The FTC adds the arithmetic. A longer term means smaller payments and a larger total, and missing a payment can cost you both the item and everything paid toward it. The benefits these stores advertise, in the FTC's list, are a choice of repayment periods, no credit check, automatic withdrawals and fast approval.
Sources
- CORT: Furniture rental help
- CORT: How much does it cost to rent furniture
- Aaron's: FAQ
- Rent-A-Center: Benefits
- FTC: Buy Now, Pay Later, Rent-to-Own, Lease-to-Own, and Layaway