What Are Rent to Own Refrigerator Programs?

Rent to own refrigerator programs provide consumers with immediate access to quality refrigerators through an agreement that spreads payments over time. Unlike traditional financing, these programs typically require no credit check and minimal upfront costs, making them accessible to a wider range of consumers.

The structure typically involves weekly or monthly payments for a predetermined period, usually ranging from 12 to 24 months. Throughout this period, customers have the option to return the appliance without further obligation if their circumstances change, offering flexibility not available with standard credit purchases.

Most agreements include delivery, installation, and maintenance services as part of the package, eliminating additional expenses that often accompany major appliance purchases. This all-inclusive approach simplifies budgeting for households managing tight finances while ensuring their refrigerator remains in working condition.

How the Rent to Own Process Works

The rent to own process begins with selecting a refrigerator from a provider's inventory. Customers choose their preferred model based on size, features, and style that meet their household needs. After selection, the provider and customer establish a payment agreement detailing the term length and payment schedule.

Initial payments typically include a processing fee and first week's or month's payment. The contract specifies the total cost over the full term, which includes the retail price plus service fees. While this total exceeds the retail cash price, it incorporates delivery, setup, and maintenance services throughout the agreement period.

Most providers offer an early purchase option allowing customers to pay off the remaining balance at a discount before the contract ends. This feature can significantly reduce the overall cost compared to completing the full payment term. Throughout the agreement, payments build toward ownership, with the refrigerator becoming the customer's property after the final payment.

Provider Comparison: Major Rent to Own Refrigerator Options

When considering rent to own refrigerators, several established providers offer varying benefits and terms. Below is a comparison of major options in the market:

Provider Selection Range Contract Length Early Purchase Option Maintenance Included
Aaron's Wide selection of brands 12-24 months Yes (120 days same as cash) Yes
Rent-A-Center Extensive inventory 12-18 months Yes (early purchase discount) Yes
FlexShopper Multiple retailers' inventory 12 months Yes (anytime) Limited
Acima Partner retailers' selection 12 months Yes (90 days) Varies by retailer

Aaron's offers comprehensive service with delivery, setup, and repairs included throughout the agreement. Their 120-day same-as-cash option provides flexibility for customers whose financial situation improves shortly after acquisition.

Rent-A-Center maintains a wide selection of refrigerator brands and models, with the advantage of allowing exchanges if a different model is desired during the rental period. Their maintenance coverage is particularly comprehensive, covering all repairs regardless of cause.

FlexShopper operates differently by working with multiple retailers, allowing customers to shop at various stores while FlexShopper handles the rent to own agreement. This approach provides access to a broader selection of brands and models than single-inventory providers.

Benefits and Drawbacks of Rent to Own Refrigerators

Benefits:

  • Immediate access to necessary appliances without large upfront costs
  • No credit check requirements, making approval accessible for most consumers
  • Included delivery, installation, and maintenance services
  • Flexibility to return the item if financial circumstances change
  • Opportunity to build ownership of a quality appliance through manageable payments

Drawbacks:

  • Higher total cost compared to direct purchase (typically 1.5 to 2.5 times retail price)
  • Weekly payment schedules can be demanding to maintain long-term
  • Limited selection compared to traditional retail options
  • Potential for repossession if multiple payments are missed
  • Less transparency about effective interest rates compared to traditional financing

The Progressive Leasing option available through many retailers offers a middle ground, with a 90-day purchase option that can reduce the total cost significantly. Similarly, Acima provides early purchase discounts that can make the total cost more reasonable for consumers who can accelerate their payment schedule.

For consumers rebuilding credit, some providers like WhyNotLeasing report payment history to credit bureaus, offering an additional benefit beyond the appliance itself. However, this practice varies by company and should be verified before entering an agreement if credit building is a priority.

Pricing Overview and Cost Considerations

The total cost of rent to own refrigerators typically exceeds retail prices by a significant margin. For example, a refrigerator with a retail value of $1,000 might cost between $1,500 and $2,500 through a rent to own arrangement, depending on the provider and contract length.

Weekly payments generally range from $20 to $50 for standard models, with premium features or larger capacities commanding higher rates. Monthly payment options typically offer slight discounts compared to the weekly equivalent but require more discipline in budgeting.

Early purchase options represent the most cost-effective approach to rent to own agreements. Rent-A-Center and Aaron's both offer substantial discounts for customers who can pay off their balance within the first few months. These options typically reduce the total cost by 30-50% compared to completing the full term.

Additional costs to consider include:

  • Processing or setup fees (typically $10-50)
  • Late payment fees (usually $5-15 per occurrence)
  • Reinstatement fees if the agreement is temporarily suspended
  • Optional insurance or protection plans beyond standard coverage

Consumers should carefully review the payment schedule and total cost before committing. While Best Buy and other traditional retailers offer financing options that might be more economical for those with reasonable credit, rent to own remains a valuable alternative for consumers with limited options who need essential appliances without delay.

Conclusion

Rent to own refrigerators provide a practical solution for consumers facing budget constraints or credit challenges. While the total cost exceeds retail pricing, the combination of immediate access, included services, and flexible return options creates value for specific financial situations. By understanding provider differences, utilizing early purchase options when possible, and carefully reviewing agreement terms, consumers can make informed decisions about whether rent to own aligns with their household needs and financial goals.

For those considering this option, comparing multiple providers and thoroughly understanding all costs involved will help maximize the benefit while minimizing expenses. The right approach to rent to own can bridge the gap between immediate necessity and long-term financial planning, providing essential home appliances when traditional purchasing methods remain out of reach.

Citations

This content was written by AI and reviewed by a human for quality and compliance.