If you’re looking to furnish a new place or get your hands on the latest devices without dropping a load of cash, you might consider a rent-to-own* plan.
Renting to own is a means of acquiring a product on a fixed rental term, with the option to own the item outright or nominate someone to receive it as a gift at the end of the term.
In this article, we’ll outline how a rent-to-own plan works and why you might like to use one for your next purchase.
How does a rent-to-own* plan work?
Rent-to-own is a payment plan by which you can purchase brand-new products without a hefty upfront cost. Each provider may have different processes, but generally speaking, you’ll have the freedom to choose the products you want, and your rent-to-own company (like rent4keeps!) will design a flexible payment plan that suits your needs.
Your rental plan will include a payment term. This is usually 12, 24, or 36 months. Throughout the term, you’ll make weekly payments to the rental company for the product. These payments will be much more granular than the actual cost of the item, allowing you to avoid a big lump sum payment and hold on to your precious cash flow. This can be crucial for people on Centrelink or weekly pay cycles.
By the end of the rental term, if you’ve made all your payments, you’ll have the option to keep the item for good — the contract will be over and the item will be completely yours to do whatever you like with. You might also like to nominate someone else to receive the item.
Some companies will include a buyout or payout fee at the end of the rental term if you wish to own the item. When you rent from rent4keeps, we guarantee you no upfront costs or extra fees at the end of your contract.
How is rent-to-own* different from buy-now/pay-later?
Rent-to-own* is a bit different from buy-now/pay-later. Think of buy-now/pay-later plans a bit like a credit card. The company you use to pay doesn’t own the product you buy, but they own the debt you use to purchase it.
This means these companies don’t tend to care about the product at all. They don’t provide any cover, assistance with warranties, replacements or returns.
A rent-to-own* company will legally own the product you hire during the rental period. Because the company owns it, they’ll look after it. So, if your product is damaged or faulty, rent4keeps will help you make a claim on the warranty or provide a replacement item as soon as possible.
You’ll also usually have a much shorter term to repay a buy-now/pay-later purchase. For example, Afterpay breaks your payments down into four instalments over eight weeks. For a large purchase like a Samsung 488L Black French Door Refrigerator, that can easily be over $450 a fortnight. The benefit is that your contract ends much sooner, but the payments are often not much more manageable.
Meanwhile, that same fridge can be broken down into weekly instalments of just $44.43^ with rent4keeps. When cash flow is limited, that’s a pretty huge deal.
What products can be rented?
Most products can be rented, but it does depend on the rental company you choose. Essential rental items for daily living include Fridges, Furniture, TV’s, Lounges, Beds, Phones and more.
Good rent-to-own* type businesses allow you to choose your product from any brand, and source the product from the nationwide suppliers and rent it to you. With same-day approvals on most applications, this means you can get those big-ticket items you need now, without any upfront payments.
Products you might choose to rent include:
● Rent a new phone or laptop.
● White goods/home appliances like a fridge, washing machine or TV.
● Furniture, including whole lounge suites or dining suites.
● Air conditioners and heaters.
● Baby needs and nursery products.
● Home fitness machines such as treadmills.
● Rent the latest gaming consoles.
What are the benefits of renting-to-own*?
Some of the top benefits on rent-to-own* type businesses include:
1. Same-day approval of rental applications.
2. Access brand new products and leading brands.
3. Zero upfront or buyout payments.
4. Flexible 12 to 36-month rental terms.
5. Freedom to choose products from any brand or supplier.
6. Access to new products for people on Centrelink.
7. Support with warranties and repairs.
Can I rent-to-own* products on Centrelink?
Yes! Rent4keeps offers plenty of different payment options, including CentrePay. If you’re on Centrelink and don’t want to use CentrePay, we can also work something out. We welcome all renters and understand your credit history and financial situation.
If you aren’t sure about your ability to rent, you can always contact customer care and we’ll help you understand your options.
I’m ready to rent-to-own*! What next?
Great! If you’re ready to rent appliances, furniture or devices, call us now on 0800 76 30 20 or apply online today. Our expert team will be in touch as soon as possible to help you get renting.
^Prices shown are based on weekly rates over a 36 months term. Pricing is indicative and may vary between different territories across New Zealand.