Looking to get a decent 4k tv for my new house. and was wondering if how people have done rent to buy be it through companies like radio rentals or by short term loans
Has anyone done this? pros/cons
Rental to Buy Sites Vs Short Term Loans
ryhawk on 23/11/2018 - 10:18
Last edited 23/11/2018 - 10:27
Last edited 23/11/2018 - 10:27
Comments
maybe… but maybe not. Finances can work for this more so than lump sum
My point isn't to save money and then buy the tv. My point is to don't buy the tv at all. You should have a pool of money saved away for a rainy day - you never know when you will have an unexpected expense pop up - medical costs etc. I know very litle about your financial situation obviously but I can only assume that if you need financing to buy a tv that you do not have any savings. Some things are more important than having new technology.
Perfect advice for a normal case.
My case isn't as normal. All unexpected expenses are now covered with new work position. but totally make sense what you're saying. Thanks
All unexpected expenses are now covered with new work position.
Don't count income from a new job until it's actually been received. Pre-spending income you expect to get is generally not a good idea. A 4K TV isn't a necessity and there certainly isn't any kind of time urgency involved - if you have a new job with a great salary? Great. Use that to save up for that TV, and then buy it.
@ryhawk: I would be curious to know what your scenario is - I cannot think of any scenario where your employer covers unexpected expenses like medical, and therefore I am happy taking out loans to fund unnecessary purchases because I don't have enough money saved to pay for the purchases up front. If I had no savings I would be freaking out!
If you can't afford it outright, you cant afford it.
Drawing out your financial obligation does not make it any more workable.
If you're poor you're poor.
I think this would be the wrong place to ask. Rent to buy and short term loans are not bargains, ever.
this. rent to buy and short term loans will add 50% -100% onto the cost of the TV
are the antithesis of ozbargain
no problems. thanks for the honest answers.
The rent to buy finance interest rate is probably around 30%-40% pa. If you have the cash to buy the TV then do so. If you don't have the cash the don't buy the TV
Radio Rentals to refund $20m to customers over unaffordable leases
Pros - You get the goods now
Cons - You end up paying a lot moreI don't like shifting the responsibility of personal budgeting from individuals to shops. I can understand the 'financial stability of the economy' angle, I do not agree with any kind of moral responsibility angle. If, as an adult, you can't work out what you can or can't afford to repay? That's your failure as an adult.
HighAndDry is happy that businesses screw you because you deserved it, morally speaking (hasn't he got great morals?) and wants Government to stay out of it so that it can happen.
Other pearls of wisdom from him include claiming that privatised electricity is has delivered a good outcome for consumers even as the ACCC calls it a failure.
HighAndDry is happy that businesses screw you because you deserved it
No, I'm okay with it because no-one is being forced into it, they're all willing participants - and they agree because they get something out of it , that being living above their means until reality knocks.
Am I okay with people facing the natural and inevitable consequences of their own irresponsibility? Yes.
Do I have sympathy for people who can't do basic household budgeting? No.
@HighAndDry: I'm on the fence about this. On one hand, I completely agree that if people are choosing to make piss poor decisions (like "rent to buy" a TV) then then it's on them - hopefully they learn. On the other, these schemes are deliberately designed to take advantage of people who are bad at making financial decisions and reading the fine print.
On the other, these schemes are deliberately designed to take advantage of people who are bad at making financial decisions and reading the fine print.
The tricky part of these things are already forbidden to be only in the fine print by current legislation. And as far as taking advantage of people who make bad financial decisions? Better ban all ads then. You might as well say that road rules take advantage of people who're bad at following the law or bad at driving.
Again, zero sympathy.
@HighAndDry: Like I said, I'm on the fence. And I never claimed that these creditors were doing anything illegal. What I do think, though, is what they are doing might eventually become illegal. Either way, like you, I struggle to find sympathy for the people getting themselves into these situations - no one is putting a gun to their head.
Doesn't seem like anyone's really answered OP's questions.
I'm sure everyone's advice to not purchase the TV is well-intentioned, but something tells me OP is still going to get it anyway.. :)
Ok then, the answer is NO
Ok then, the answer is NO
hahaha - it's definitely not worth getting it, but some people will stop at nothing to get what they want now. They will just look for the relatively cheapest way to get it.
Then Gumtree. Hopefully by the time OP finds a TV, arranges a buy, gets it home, realizes he's been scammed and has finished dealing with that… he's also got his first paycheck from the new job and can actually afford the TV without a loan.
Honestly, "Price of 4K TV + being scammed on Gumtree" will probably still work out to be cheaper than rent-to-buy or taking out a short-term loan.
Honestly, "Price of 4K TV + being scammed on Gumtree" will probably still work out to be cheaper than rent-to-buy or taking out a short-term loan
LOL, better to stick with the gumtree scam you know than risk the slick flexirent scam offered by a salesshark in a suit.
Wow, Just checked Radio Rentals rental prices. For a LG 55" 4K set that retails for around $1,200, on a one year plan you pay $2,340 in rental payments, and over 5 years a whopping $5,600
@Ocker: Damn!! I knew it was a ripoff, but didn't know it was THAT much of a ripoff!
Better off taking up an interest free offer (ie, store card), depending on how disciplined someone is with their spending.
edit: I had to go have a look myself to believe it! I can't think of a reason why anyone would want to go through them! Unbelievable prices!
Money from your savings account
You could look at an interest free loan from Harvey Norman (https://www.harveynorman.com.au/customer-service/finance-opt…) or equiv if you really think it is necessary and you can maintain payments. However they do have a few sneaky little fees in there - eg setup fee, monthly admin fee. But after that as long as you make all the payments on time it is interest free.
I'm surprised no one has said buy it with a credit card.
If OP really wants to buy the TV before he has the cash then putting it on a credit card will cost him around 1-2% per month until he pays it off. That's a way better rate than these rent to own companies will offer.
If OP doesn't intend to pay it off within a couple of months of starting his "new work position" then he's should never be buying the TV in the first place.
Credit cards are designed/marketed for these situations where future extra income is known (through new job) but current circumstances leave you cash poor. The trick is to use them as designed and pay them off as soon as the extra money starts coming in.
Sadly the kind of person who rushes to buy the latest TV before they have saved the money is rarely the kind of person who understands how to effectively use credit cards… Good luck OP.
That's a way better rate than these rent to own companies will offer.
By far. Though it's really not a good sign when paying off something on credit-card interest rates is the better option, but yes, this is what credit cards are for. Far far better than short term loans or flexirent
scamsplans.Some credit cards offer 0% balance transfers for 12 months…is there a scenario where we can use that to make purchases interest free for a period?
Please post copies of your latest bank statements and your employment contract and we will decide what you can afford.
That's assuming op is employed. Payday loans don't even care for a customer's source of income which could be why OP has their eye on flexirent/payday loan options
You're better off buying a secondhand tv off Gumtree.
Renting to buy is a scam. You will end up paying much much more than the tv is worth at the end of term. The companies who offer these deals prey on the uninformed/morons to get rid of outdated stock.
Steer very clear.
May be placing a lay by at Target or Big W for a TV? I think they also provide Afterpay as a payment option (interest free 4 fortnight payments).
I would caution though as you don't sounfs like someone with much disposable income.
Do the math, whichever is cheaper is better.
Most people here would have used a credit card or similar that offers no interest/etc, in fact, adds points on top of it (Amex/etc).
Rent to buy and short term/pay day loans destroy your credit history.
Many finance companies (not even banks) will not lend to you if you have had short term or rent to buy loans recently.
Many finance companies believe short term loans and rent to buy schemes correlate with a lack of saving skills and poor impulse control.
If you must borrow, get a $10,000 personal loan. As long as you make payments on time, every time, it makes your credit history better, not worse.
That said, you can get a 55" LED TV for $600 lately. Like others have said, if you can't save $600 in six weeks unfortunately your budget is too tight at the moment to support a loan for a TV.
If you need to rent to buy or take out a loan for a new 4K TV than can I suggest that you probably cannot afford to buy this tv and should save your money?