Rent To Own: Keeping The Poor Poor
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- เผยแพร่เมื่อ 13 มิ.ย. 2024
- In this video we critically analyze the rent-to-own industry.
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0:00 - 0:54 Intro
0:55 - 3:10 Rent-to-own customer base
3:11 - 6:15 Deceptive sales tactics
6:16 Collections - ภาพยนตร์และแอนิเมชัน
I still remember my 5th grade teacher breaking down the math of rent-to-own furniture and why it's a horrible deal. Thank you, Mr. Dupree.
IMO this legitimately needs to be a course that's taught, probably sometime in high school. Basic life economics.
Better than sitting, sleeping, eating on the floor.
@@tonycrabtree3416its still terrible in every financial sense.
Your teacher is probably a very kind man but im sorry I can help but think of John Dupee from Hansen v Predator when I see this
@@tonycrabtree3416 Going into debt because you're to proud to sit on the floor and eat is embarrassing
I worked in this hell hole for 2 weeks, not only are customers broke so are all the employees including the manager.
That's crazy
Fuk me were the money go?
The manager proably has a fridge with 29 easy payments of 99.99
My stepdad worked there in 2002-2003ish. He was paid above minimum wage at the time and got a few bonuses. That might vary by location, though.
A few years ago, our fridge died. While we waited for the new one to come in, we thought we’d rent one for a few weeks…. NOPE. Renting was like $75 a week plus delivery and pick up fees and we had to do a multi month commitment to get that price. We went back to Lowe’s and bought a mini fridge from the same guy who sold us our new fridge. He said bring it back to me, you can return it and I’ll waive the open box fee.
With fridge renting the seller is pricing in all the people that can't/won't pay/return
That was nice.
Doesn’t everyone have an old fridge they only use for family bbqs beers? I know I do and if anybody is in need of a fridge they can have it for free
We did the same thing for three weeks while we waited for our fridge from Best Buy. I have an excellent credit score and they still wanted those references. I said I would just pay upfront and gave my credit card. They backed down. I brought it back three weeks - to the day - later, and made them shred the contract in front of me. What dirtbags. I did, however, feel badly for the people working there.
I had a office fridge/freezer that came up to my neck in my first home for a quite of a few years before getting my first full sized used fridge. Heck I was single what did I need a full sized fridge for? I am nearing retirement and I have never owned a fridge that had a water or ice dispenser. I saw such things as a total wast of money but I have been in a few low income houses where they had a really expensive fridge with all of the bells and whistles.
I had a co-worker rent to own a couch from Rent A Center. I knew these places sucked and asked him what his interest rate was. He said he never knew just that his payment was low. Told him to do some research on the company but he never did, asked him a couple times after that if he checked his rate. He never did...
I don’t feel sorry for someone like that
and thats exactly what there counting on. Not the fact there customers are poor just ignorant.
I had a friend that got caught in the payday loan cycle and I offered to loan him money and he'd pay me back in increments, obviously 0%.
Another friend told me he already did that and the guy spent the money instead of getting out of the cycle lol some people are determined to be poor.
@Aaron-kj8dv rich dad poor dad. no Delayed gratification and general stupidity is how grifters thrive
One way to look at it is, they are providing you the service of helping you save up for something you want, and they charge you a healthy fee for that service. Everybody wins!
When I was 8 we walked past one and I did the math on a Xbox, and went “who the heck would pay $900 for a $400 Xbox?”
Not people that do math and consider interest wasted $$
Yeah it's crazy, like 160$ a month for the refrigerator, just put the money aside until you can go buy it
Stupidity is a tax on the ignorant
The fact that they can sell an Xbox in such a store shows that it's not just a problem with math but a problem with lack of control in spending. After the credit card companies cut them off, now these companies prey on them.
Math is not strong suit in America
@@NeonBeats_Waifu Not defending rent to own because they are scum but living without a fridge for 8 months is a lot harder than living without a x-box so could understand why people would go with that option if they are cash strapped.
Knew an older couple who tried our Wii, and really wanted one (we're talking a decade ago), I paid $150 for ours, they rent-to-owned one for $500+ over 2 years, and they were fine with it.
Sometimes you can't help people...
Did you tell them?
In February i found a 2022 model year (2 year old) samsung gas range/stove on the side of the road someone was throwing out. Took it home, cleaned it good, and hooked it up in my kitchen to nat gas and it mostly worked, but the oven burner was not staying lit. With the help of a free youtube video i diagnosed a bad bake burner in less than an hour and had a new one delivered to my house the next day from amazon for only $22, and had it fixed and working in half hour. The exact model is selling at home depot for $1,199 today. You dont need money to have nice things
If people do this make sure you ask the home owner if they’re throwing it out and not just transporting it or selling it, because it could technically fall under theft
Sounds like you had a lucky find and were a bit handy.
I'm not sure everyone is going to be able to do that, though..
I slept on an air mattress for a couple of years before saving up enough to buy a mattress. I could understand why someone would rather use these type of businesses to immediately buy something they need. I do feel bad for the financial illiterate.
To compare 1300$ to 40x99$ one doesn't need degrees in finance. That's primary school math (multiplication) not Calculus III. Any person not capable of that is basically unfit to live on their own and should have legal guardian.
@@sznikers ‘1300$’? ‘99$’? Lousy punctuation.
Wait you had to save up money to buy an air mattress?
@@sznikers someone behind the scenes is paying for that product upfront for you to use without even a down payment, you can always look for a better deal and pay cash
That's what personal loans or credit are for. This business is just a scam for morons.
>>>"Are people really so impatient ..." Yes. End of video.
More correct would be: "are people really so stupid" but yeah, the answer is still yes.
@@tellyboy17still smarter than NFT investors ironically
Poor person: Needs a refrigerator to store food, because in a year he/she will earn enough to buy it everything will spoil
Commentators: They are just impatient and stupid
@@turningpoint00001 Who doesn’t have $3000 on hand to replace a broken fridge? Haha
@@turningpoint00001 If they want to pay 500% of the fridge's cost over the span of a few years, then more power to them. I don't care.
About 20 years ago, a company started in Conway, Arkansas, for rent-to-own car rims. That's it... just fancy rims for your car. Not only is this company still in business today, but thriving.
That has to be a front for something lol like money laundering for the mob
Theres places here in Virginia that rent wheels. its the STUPIDEST thing i ever seen. and you usually see them on crappy 90 something Honda CIvics and old Ford Crown vic police cars. You always know when you see these stupid cars sitting on blocks they missed their wheel payment......
That's actually brilliant. Just have to find the right area and neighborhood for your business, which it sounds like he did.
I used to drive by a place in Colonial Heights, VA that not only offered rent to own rims, but also just straight up rental rims. You could rent some rims to look cool and then bring them back!
They just sold the rims?
No spokes or hubs?
Would it to be safe to say rent-to-own is basically payday loans with furniture?
Sounds like it is _worse_ than payday loans.
I'd say it's just a hair better. At least you get something tangible out of the deal. Payday loan places make loan sharks blush with the interest rates they charge.
I would say it's somewhere in between.
Because those interest rates only get REALLY frickin silly if you compare store prices to the cheapest you can find online.
And as we all know: folks have no problem paying store prices if there is a 10% sales sticker on it, rent to own or not.
It's all short term small lending.
Yeea😂
I used to do IT support for a rent to own company, and my friend did for a payday loan company. These places and their clientele are crazy…
Some people have toddler level of finance. Lending money to my sister was like giving it to her. If i was not able to reach her on the day she received her welfare check, the next day everything was spent..almost always on unecessary stuff like the new phone, restaurant deliveries..I cant ever imagine her saving 13$ a week for 6 weeks to get a monitor..😂
‘13$’? Only if you are dyslexic.
It's honestly shocking how much you can make just by being frugal. I don't make good money (my rent takes up over half my net income and I don't earn enough to get a mortgage yet) but I'm a few hundred quid in the black each month.
@@PragmaticAntithesis Agreed. Just shopping on sale helps so much. I went to the grocery yesterday and my bill went from $135 to $91 when she totaled it up with the discounts.
The money is not earned and is replaced with zero effort. If the money was earned, then there'd be a realization of it's value; but in this case, it's not earned thus has literally no value because it's replaced on a schedule..
@@MrPir84freeThis is why part of my dating criteria is for a woman to be capable of supporting herself independently. Only then does she count as a full fledged adult.
There was a reason why we made our ones follow "responsible lending" laws here in the UK, a move that basically killed the market because they couldn't "offer" 200+% interest...
Hayek and Trump supporters could argue that Thais is the state "babysitting" people and they should have the freedom to squander their money. I pity the por debt collectors, though, a Lot of the Rent a Buy must be drug dealers.
This one fascinates me because yes it killed the market and the people who used the service now had nowhere to go - I’ve never seen any data on what happened next to the people who used the service - they must still have the need so has it all just gone underground?
@@charlesmoss8119 When something goes underground, the chances of its happening declines
Unless the entire society is addicted to it
@@charlesmoss8119 I assume they moved to using "buy now pay later" payment providers like Klarna and PayPal Credit buying off normal retailers.
@charlesmoss8119
I actually think the government kind of helped solve this to a certain degree.
If you're on benefits(which most low income people are on some kind of benefit) you can ask for an interest free advance.
No more saving up to buy this sort of thing, you just borrow the smaller amount to afford it.
It's low risk for the government too, they take the money they're owed from the benefit before paying it, so unless you get off the benefit they are guaranteed to get their money back(and the people that do get off the benefit pay more in taxes and cost less, so win-win).
The ongoing joke where I'm from is if there is a rent a center in a neighborhood then you're not safe.
Lol so very true
Really more a statement of fact.
My town has a few plus a bunch thrift stores and currency exchanges. You know because that's how people that don't have bank accounts or immigration papers cash their checks from work.
And a cash advance place
Someone who lived in a home that I bought had rented a TV from Aaron's and stopped making payments. They came to my house multiple times late at night and I told them they didn't live there anymore. One day when I was trying to leave for work, they blocked my driveway and refused to move. I called the cops and they both got arrested for trespassing along with the truck getting impounded. Going to their court dates after the DA decided to go forward with charges was honestly the funniest thing ever. Got an email from the CEO of Aaron's at the time apologizing for everything a few days later. They practically begged me to not share any of the videos with relevant state and federal agencies... that's exactly what I did.
Please share these videos
Surprised I didn't give you a pitch to rent to own some stuff.
I worked for Rent a Center for several years. There is no deception. These people know exactly what they are getting into. These people do not want or do not know how to save and will pay these crazy prices to get it now.
We wouldn’t want people taking personal accountability.
Yes and more than half of these customers have no intention of paying at all.
I haven't watch the video fully yet but I already agreed just from the title. I will always remember my friend telling me he got an Xbox (the ORIGINAL xbox, yes that long ago lol) from them and paid some 60 dollars every two weeks for like 24 weeks or something stupid. I quickly show him the math that this way it would cost him 840 dollars when the thing cost just 200!! Best to just save those 60 each time til he had 200 and buy the thing outright!
Plus, by saving, he will have the money to OWN it sooner.
@@KryptonianAI Yep, sadly he didn't listen to me and stay with it for about 2 months until I am guessing he notice the horrible deal it was, but by then the damage had been done cause if he had listen and had save the 6 for those 2 months he would had the money to buy the xbox instead.
I knew someone who operated in the sub prime sector in the UK and in response to my query over ethics he pointed to the catastrophic delinquency rate and also the intent of the customers. He would say you paint a very rosy picture of the consumer, that these are in fact victims, he said a large proportion of his customers were people with no intentions of meeting their commitments who ran up loans all over the place. So I now view these places as yes bad, but offering perhaps the service level that matches the intentionality of many of its customers, with the good customers having to subsidise the bad.
That is the point most people, politicians, and regulators miss. The individuals using these stores are doing so because they have locked themselves out of the regular credit markets and live in the subprime world. Credit and income are not the same, although we conflate the two. You do not need to have a high income to have good credit, you simply need to pay your bills on time every month. Individuals like these with subprime scores have repeatedly defaulted on loans and bills and that is why their scores are so low.
"Because there are some dishonest people in the world, I will create a dishonest business to assist them."
-Someone Convincing Themselves
@@mrlevhil
How is this a dishonest business? While it may not be the smartest financial decision to use one of these businesses, they are doing nothing wrong by offering credit to people who do not qualify for other lines of credit. Businesses like these are accurately pricing the risk - perhaps the very high apr should make consumers of these business second guess their financial decisions
@@mrlevhilI mean the business model and sale is quite obvious, if the consumer is too dumb to multiply payment by number of payments to find the effective cost, I think we should fix the schools, not rent a centre
I gotta wonder if those 6x price increases are just the way hospitals act with their oversized bills, know full well the insurance company will only ever pay a percentage of it (where the uninsured would be getting nailed full price).
I've used a service like this, but for a particular use case. I was going to stay at a particular location in an empty rental for three months, so I rented the appliances and the furniture. They brought everything, installed it and came to get it at the end. It ended up being much cheaper than renting a furnished place. But rent to own is crazy.
So it's not a service at all like this.
"I once did this exact thing, only it was totally different." --internet bro-it-all
That's a completely different thing big dawg
@@younghokim1994 It's a similar service. You can rent furniture (or a TV, etc.) from RAC for a month (or however long) and just return it. Most people using it rent-to-own, but you can rent it and return like @josephs3973 did.
That sounds like rent to rent not rent to own. Renting is of course a sensible way to temporarily 'own' something that you won't need anymore a couple months down the line.
Worked for RAC as a sales manager for about 6 months. It was the sleaziest place and I felt horrible trying to sell the overpriced junk. From having to add on their useless protection plan without telling the customer to bundling stuff to "Get a better deal" when it just makes it extend the term so they pay the same if not more. Absolute worst job I've ever had. Let's not forget stealing OT if you ended up a few minutes over because no OT was allowed.
How does the protection plan work? Given that you're technically renting this stuff and it's not even yours anyhow so if it broke couldn't you just call them and say hey your appliance broke. I want another one.
in the UK, our supermarkets have to put the price per 100g (or similar) on every price tag in small writing along with actual price in large. this allows you to compare easily a large bottle of one product with a small bottle of another for example in order to make an actual comparison. pretty much everyone ive been in a supermarket with have never looked at this small comparison price, which is the actual indicator of the cost. anyway just thought id share this because it does relate to the video i think
I'm suddenly reminded of that gym that called me to try and collect on my friend's membership since I was listed as an emergency contact. Why ya'll calling me if he's not in medical distress? I don't have money to cover a lapsed payment for a place he's probably not even going anymore.
To shame him so he pays
@@1NicholasWeir I think he just learned to provide false numbers.
Corpies be trying to turn ‘next of kin’ into ‘guarantor of the loan’ 💸
This is why consumer education needs to exist. Used appliances are worth it. Second hand furniture may not be great but better than paying those sharks.
especially for lamps and tables and chairs. prob metal or platic anyways
there is a reason consumer education is weak. We need this pool of people for the society to balance and keep running. its sad but thats what it needs for the economy to keep going. We need good balance of the rich, the mid class and the poor.
@@traderzzz123 that's simply propaganda.
@@LastDitchHero not really. it's just how life is. we need both the poor, mid and the rich, each group has a specific & purposeful role for our society to run.
@@LastDitchHero It isn't remotely propagandistic. The US needs debt slaves to keep the wheels churning. The economy literally cannot afford for more people to be fiscally responsible.
Next time you meet someone who is deep in debt, thank them.
There was a time that you could get the best deal on a big screen TV from a Rent to Own place if you paid cash. The reason was because they sold/rented more big screen TVs than anyone else so they got the best deal from the manufacturers.
I went there once when we needed a washer and dryer for a rental but didn’t want to buy. The cost was astonishing and we just bought some from Craigslist
buying used is the wisest thing that no company wants you to do. The planet does, though
The trick is to find a model that has already been rented. I did that years ago and the price was comparable. Still works great too.
I knew from my teens that rent-to-own was a scam. I got free or used furniture that I owned. When it was worn out; I would save to buy better furniture. when my refrigerator broke, I used a cooler for a couple of months.
I'm in my 30s and I bought some used furniture for my house. I just bought much nicer used furniture than I did when I was 20.
One business I’ve definitely understood the least from a customer’s perspective. Literally everything they rent out can be lived without
Well, most people are bad at saving, this model could "work" for them, since it makes it affordable to pay. Also the interest is that high because of the massive number of people who do not pay, so guess who ends up paying? The good poor paying customer.
I know a good use case: trying something expensive out and giving it back whenever you want. At least I've heard a couple of people using it that way
@@tomlxyzI see you on all kinds of finance channel comments keep up the grind 💪
The poorer side of my family was so bad about using these places, don't know if they still do. We know because we were the references 😂 . Financial education is really lacking in American schools
Culturally people don't believe you lol
@@tomlxyzIf you want to pretend to be an Animal, go to the vet and get neutered.
Quite a lot of 'cheap' things keep the poor poor. Like buying crappy shoes and clothes that wear out and are replaced more often vs buying quality items that last significantly longer for not much more money. That's also why there are so many Dollar stores. The prices are low, but the items either don't last as long or you get fewer/less so they cost more per use. Even stuff like tires. Shitty $60 tires plus a $20 for a mount and balance every 25k miles means $240/75k miles. Much more than a quality tire that is better in every way and last three times as long as a 'cheap' one.
You're mostly talking about China's bubble. Most of those products were being sold at cost financed with huge loans in a systemic ponzi scheme. That collapsed when interest rates went up
There are so many used clothes. I don't think anyone actually needs to buy any new clothes ever at this point. It's just something people like to do.
I know the prices are obscene, but the store probably has a 50% default rate from the consumer. Then the store also has to hire collections agents and other overhead. I'm not saying its right, but I understand why the prices are high.
There is no shame in buying used, or saving up and F.... what some celebrity etc can afford.😊
You can always choose to not do business with these people.
I just realized I don't even know where the local rentacenter is because I would never consider shopping there......
Exactly they not forcing anyone to sign a loan
@@orlandocastillo6862 Drug dealers don't force people to buy drugs
And $20 a week is not $80 a month. It’s $86 a month (52 weeks vs 12 months). Again, if one cannot do simple math they are great targets.
In the UK we had bright house. They did just this, with altered part numbers to confuse people and avoid comparisons. The price was higher than other stores even before you consider the interest . They charged comedy interest rates. Fortunately they went out of business
Financial literacy needs to be a core course in school, it’ll probably never happen. Once people are in survival mode it’s very hard to get out.
These people are lucky to leave school with any sort of literacy.
They would fail financial literacy class just like their other classes. Basic arithmetic is already on the syllabus.
Its about poverty not financial literacy. These people don't believe they will ever be able to afford to pay the full price at once so it doesn't matter if they pay more in the end. And they are right, most of them will live their entire lives in poverty. They are already living week by week anyway. They get to take the item home today and enjoy it. Their credit score is low, the worse that happens is it get repossessed. Then they just go to another like place and buy the next item on credit.
can you teach commonsense though?
It's literally illegal in some places because it's too "western" and "racist" to imply that personal responsibility is a major factor in financial success. Some people actually believe that financial literacy is an extension of white supremacy, and some of those people have a lot of power in places like Seattle.
I know these places now a days suck BUT, I remember back in 1988, I move to Tampa, found an apartment in a decent apartment complex, went to a rent a place and for 52.00 or 56.00 A MONTH not a week, picked up a queen size box spring and mattress, a night stand, and a couch, lived in the complex for six months then decided to move back to my home state, called the rental place, they came and picked up the stuff a few days later (and yes, I had to also find someone to pick up or buy out my lease for the remainder period, which I did) But I think in early 2000's I started to notice these places started to charge by the week and not the month.
I’m from Louisiana and I started my career at a RTO tire and wheel shop. And the tire part is fair, if you drive you need tires and tires are expensive. Wheels however is A different story. I’ve seen people walk out with a $500+ a month for 6 months set of used wheels and tires to people that were on government assistance or fixed incomes. And then when they were unable to pay we had to leave their vehicles on cinderblocks. Disgusting work culture to be in, especially considering as employees our incentive pay was performance based so you’re trying to work without your coworkers most of the time.
The thing that truly amazed me though was the amount of CUSTOMERS that would buy another set just after paying their inflated junk off. “Gotta keep it fresh my boy” one of our regulars on disability told me after I put a second set of chrome 20s he couldn’t afford on his 2008 Accord.
ALSO, if you don’t pay them off in 6 months a ballon is added. Usually around 25%
I got a stackable washer and dryer from rent a center , yes it was expensive only if I reached the end of my contract.
I knew in two months I was able to pay in full , overall yes I paid like 110 more but didn’t have the cash at the time and I needed it immediately. If full contract was meant would of paid like 3,995 on think 32% something like that it’s been a while
I used to work for rent a center. Worst job ever. I got assaulted by a customer who wouldn't pay for a couch and the manager was so stupid that he sent me there by myself to pick it up when she lives on a walk up.
5:52 Problem summarized in one sentence: “realistically the type of people who shop at rent a center a probably not the type of people who would take the time to do these calculations”
Sadly this is the reality.
To be fair I also significantly underestimated the cost when I saw the 30% interest rate in the 200 dollar laptop.
To be fair our brain is not set up to think exponentially, we are terrible at marking estimates about compound interest, we have to force ourself to use maths, not guesses.
But it would be so simple without maths, if you just follow one simple rule:
Don’t overspent your income!
Better rule: just have a budget.
@@v3prhunterkiller828 even if you budget these interest payments, you get ripped off. Just don’t buy stuff you can afford, that simple.
You're not just dealing with people who can't budget, you're dealing with people who refuse to budget.
Take the time to do math?
“Hmm, what’s $__ x # of payments?” 20 times the retail price?! Imma get TF out of here!
There’s no excuse for this BS now. Virtually EVERYONE has a smart phone and Google is free. If you don’t Google what something should cost when it’s this big a purchase, I don’t feel bad for you. Even more so when everyone has a calculator in their pocket at all times.
takes 2 seconds to see that the interest rate is insane, its not hard, just withdrawal the same ammount of money from your acc as the pay,ment plans and in a couple months you can buy 6 tvs instead of 1 that you still owe 800 dollars on
I used to work for one of these crowds. It made me sick every time I had to deliver an over sized expensive TV to the poorest section of town. The only saving grace was picking up the gear from people who realised that they couldn't afford the item, it often got resold at a high enough price so the original buyer didn't lose out.
As long as math is considered racist, companies like RAC and Aaron's will continue to exist. We all carry calculators on our phones. A few simple calculations would prevent folks from getting fleeced.
I get that it's a horrible deal, but when I was young, broke, and had no credit I did the math on how much it would cost me to get to a laundromat with my toddler and no car, and what it would cost to rent to own a washer - I figured out if I paid it off early and used it more than 3 years I'd save money. After I successfully did that, I had credit and was never in that bind again. But these companies live to take advantage of people like I was
I remember when the PS2 launched my brother wanted to get one through RAC; I’m 3 years younger than him and did the math and showed him that it would be over $1,100 and he was better off setting the cash aside for a few weeks.
I wandered in to one in the ‘04. They were “renting” Dell desktops. I was buying more powerful Dells at the time for less than they were charging in “rent” over just 2.5 months. And they wanted the “renter” to pay them over 12-months.
Pure insanity.
These type of shady shemes dont count on the fact custoemrs are poor. They count om the fact average customers are ignorant and uninformed. Any finacially minded person would see right through it.
So you don't know much about poverty
@tnickknight I used to be poor so I would like you to expand on that comment. What I said was correct.
@@thanosianthemadtitanic No, he's right , you know nothing about poverty.
Yeah, I worked with them. Employeea made little, managers made little, but upper management got bank. Hated working with companies like that.
The fact that businesses like "Rent a Center" exist shows how math challenged some people are. Also, people with low incomes and credit scores are a captive audience for these businesses. Same for payday and title loans. As I have said before from experience; "being poor is EXPENSIVE."
Straight forward to "You own nothing and be happy" moment
I understand that people take issue when people get stuck in cycles of debt, but fundamentally, this isn't the company's fault. If a consumer wants to make consistently impulsive purchases, it's not our job to fix their lives for them, people should be more responsible with their money. Also important to keep in mind is that because these people have terrible credit, no sane person would lend to them on a conventional financing deal. You might think that a mattress is only worth say $1000 because there's competition out there, but if you had no mattress you would definitely think it's worth more than that, maybe $4000. If we pretend RAC doesn't exist, then people might be left with no mattress whatsoever - and it's not fair to put our moral indignation over somebody's own choices about their own lifestyle.
Used rent a center once. Working on a project and had a power surge that blew out my monitor. They were the only place opened. Got a monitor and finished the project and fought with the store to take it back. But they did take it back and I paid a week of rent on it lol.
Thank you for making this video! We need to be talking about things like this and trying to spread the word on financial literacy. If you didn't have people in your life growing up to clue you in on things like this then I totally understand how this scam would go over your head and you would think it's a lower impact way to pay for the things you need. Being poor can be a viscous cycle where you get the worst deals and it keeps you from even being able to save money for a safety net. We need to help spread the word on financial literacy because it's draining our country.
Man, the US has truly been mexicanising in a bad way. These pests of a store became very popular in Meméxico after the 90's economic disaster and have basically sold young, uneducated customers a dream of a life they realistically can't afford through rent to own schemes which have wreck havoc on a lot of people in the country. This and the rampant pawn shop rackets have kept poor people indebted as if it was the old Hacienda model from before the revolution, basically enslaving the folk. Be smarter than this, never rent to own in anything that is essential, preferably never.
How can you talk so much but say so little?
@@samsonsoturian6013 he said a decent amount... did you listen?
Don't forget that the ppl that shop rent to own will also stop paying after a couple months, so the interest isn't that high, and they will eventually file for bankruptcy so they will never pay it off,
This is actually a well researched video. Some videos on this channel are more entertainment than accurate but this is a genuine public service announcement. Thanks.
Phillip.
I remember as a kid getting a magazine with a bunch of cool toys and electronics for sale for the advertised low monthly price. After a little quick math later I thought dang who's paying this price?!
I hate the term "Rent To Own". No, you're paying off a massive debt, and if you miss a payment, there are huge penalties or you lose the goods. It's designed to extract as much money as possible from people who can least afford it.
Radio Rentals, a very large and popular 'rent to own' business in South Australia went bust almost a decade ago. I was so happy to see the demise of this terrible business. Their stores were insanely annoying, with constant 'RENTING MAKES SENSE!' ads playing on every TV. It was like a sick cult.
It's seller financing. Car dealerships do it too, but in their case there is an actual need for the loans and each loan is large enough to be worth the transaction costs.
"Will people pay 6x higher to save 6 weeks?"
Well, people pay 2x to save 3 days for video games releases so... Ya, probably. People suck.
I remember back in the days before they required SS# people used to rento to own, furnish the whole apartment and moved taking all the furniture with them and never having to pay rentAcenter a dime
I got a washer and dryer from rent a center back in 2016 and will never do business with them again. If you miss one payment, they will indeed harass you and bang on your door every single day until you make the payment.
It sounds like 'you' failed to do business with them.
Remedial Math scores are ALSO low in Louisiana and Mississippi
They have this stuff used for free on Craigslist
A friend of mine worked for RAC back in the late 90's/early 2000's and I remember his mind being blown at how much people effectively payed to rent VCRs and DVD players at the time. He also told me stories of cockroaches and other nastiness in some of the items he had to go reclaim.
When I was in the Air Force there was this guy that I knew that got kicked out and was renting to own a TV from a local rent to own place thatt preyed on the military. Many military people back then were forced into these types of outfits. Not because of bad credit but due to many companies having a policy of not extending credit to military people below the rank of E4.
He had been paying on it for 2 years and went back home to Idaho and asked me if I could turn in the TV for him. I thought that well since he'd already been paying on it for 2 years that maybe since he already took the hit and it might just make sense for me to continue taking over the payments versus turning it in.
It just took a few minutes of running the math and not even taking into account the depreciation on the TV to realize that even with him having paid the first two years out of four it was still a rip-off.
3:04 Yes, they are. There’s people out there who just aren’t that bright. Society is neutral and rewards them accordingly. I’m sure they would object, and feel entitled to the same life as someone else they see, but we’ve already established that they aren’t very smart. This phenomenon is crystal clear to people who don’t fall into that category
This is the completely amoral and bankrupt attitude that leads to 'businesses' like this. There is a reason we have government regulations - otherwise anyone however 'bright' they are can be scammed.
Stupid spending decisions is often what keeps the poor poor.
Because the smart spending decisions ar not available if you are poor.
@@tyo0815 You are both right. Yes the poor have fewer good opportunities, and they also often make bad decisions on the ones they have available. Life is unfair, but making good decisions will make it less unfair.
It's one of those "How could this possibly exist?" industries where, at face value, the whole thing is so absurd you'd think it couldn't have customers, but people either want something desperately enough, don't really think about the prices, or plan on defaulting while keeping the item.
And apparently there are enough people with bad enough credit they can't just get normal financing which, for some retailers, has a zero-interest period where it can be repaid. (Not that I'd opt for financing anyway -- if I couldn't afford something like furniture, an appliance, or a gadget, I'd sooner just do without it or find a cheaper substitute.)
The zero interest period is free money if you pay it off before the interest kicks in. I just got work done on my house and it came with deferred interest for 18 months. As long as I pay it off before the interest kicks in I pay nothing extra--so I have the money in a CD waiting.
That plus it seems like this requires not just zero credit but zero patience
Thanks for trying to spread the word on this.
Man the US education system is sooo doomed. I have 2 co workers that rent to own Fridges, dish washers and laundry machines. They say it's more affordable for them, but I swear if we sat down and did the math they would realize they are paying double the price in the long run. Don't even get me started on their financed trucks.
Here's one way to solve that - sit outside one of these stores and tell someone "it's more expensive in here - a lot". Soon you will see no one actually cares. They aren't interested in being successful financially. They see shiny TV and say "I can afford it".
that's the kind of business that would make a communist sound reasonable.
I can promise you this isn't just a thing in the US. Stupid people are all over the world.
In EU this kind of business would be illegal. This is a problem of the US authorities that don't act to declare illegal this type of stores
in canada too. but i'm sure many americans will tell you this is the kind of "freedom" that makes them so great -- the freedom to screw over whomsoever allows themselves to. they'll even tell you that the victim deserves it; that to allow oneself to have fallen victim to x or y is already proof that they deserved to have been had. of course it is often those who have been victimized themselves making this argument, those who only know justice in the form of the enjoinment "do unto others as has been done unto you." this is an ideological regression back into some kind of pre-modern morality governed by lex taliones, pathos mathei and ritual scapegoating; elsewhere it is thankfully pretty standard to have laws meant to protect the poor and the weak from those who will think themselves great for having exploited the vulnerable
@@oceanbearmountaineasy home exists in Canada
Why would that be illegal in Europe? Check out Grover, founded in Germany with HQ in Berlin. It's just crazy to scream for more regulations. A company offers a service, take it or leave it and let other people decide for themselves.
There are some European countries where this is illegal, but the rules in each country are different. There are no EU rules about this.
Making a service like this “illegal” would not solve the actual problem of individuals having credit histories and scores so low that they have disqualified themselves from having any access to credit.
In the EU, many of these types of individuals would simply have no access to credit so they would be unable to purchase any of these items. The EU does not regulate that credit must be made available to even unqualified buyers, so buyers such as these simply exist outside the financial world and would be left with no recourse but to buy on the second hand market from an inventory of possibly stolen goods.
When I was in college I worked with a guy who was a habitual renter, he had one of those big old portable cell phones when they first came out. He had a lot of side hustles including dealing drugs so he always had something new. He was also a super nice guy, everybody loved him.
Well that was eye opening!! I bought furniture from them many years ago. That is so twisted, deceptive, evil, and disgusting 😡. I can’t believe the lengths they would go through to torment the poor that way. Thank you Wall Street Millennials for blowing the whistle and shining the light on these vultures.
Will you sit down and re-evaluate your financial choices and literacy? Or have you already forgotten about this in the 1 day since posting your comment?
honestly, places like a " rent a center" only exists because people are too lazy to do basic math or maybe they don't even know how to do math.
Even if you can do math, the numbers they give you are deceptive. The company is a scam, you should blame the scammer not the person getting scammed. Imagine your grandmother falling for something like this.
Not always too lazy. Petty criminals refuse to do math and get angry when you say too expensive because they plan to beg, borrow, steal when bills come due.
I know people that do this
@henlo1910
My grandmothers weren't dumb enough to fall for this. I don't see how this is a scam. They sell you the product as advertised for the agreed upon price.
Everyone is keeping the poor poor.
Including the poor😂
@@jasonpark1556 facts lmao
The poor stay poor because they make poor financial decisions, and the best part is that the poor, like to look rich.
Capitalism is keeping the poor poor. Social systems work as do unions.
@@MrJudeWanamakernope
I actually worked here for 3 days and it was the worst experience. I was told to go to a delinquent customers house in a terrible part of town and either bring back the rented big screen TV, bring back the delinquent funds, or dont come back at all. I chose the 3rd option.
The only thing I buy ‘rent’ from rent a center is washer & dryer because they break so often these days (south St. Louis warranty I call it) instead of buying a new set for almost 1k once a year I pay $20 a week and when they break they come swap them out for me (sometimes every few months) no hassle; in some anomalous case where I almost pay them off, I have them come come pick them up and bring me a new set before they pay off lol
I'm surprised they just don't blame you for it and charge you to fix it
It’s simple live within your means, and learn to use a damn calculator.
People can't cover a 1k emergency, what makes you think they can drop $1300. That's the niche they fill.
It's called saving
@@TheRealCatofyeah, normal peoples usualy should save can money but if stupid peoples spent litteraly 3 times more msrp for a fuck1ng fridge, they cant save money in first place
@@TheRealCatofMany people can’t save because they are not paid enough to meet their needs. To say that means you must live in a privileged bubble.
@@pisceanbeauty2503 No, it really isn't. Every broke person I know is broke because they eat takeout ever other day, or worse using door dash.
Or they have a $1000 monthly car payment.
@@TheRealCatof “Everyone you know” isn’t a huge sample size. Try again.
My stepdad used to work for Rent-a-Center. He made good money for the time and his employee discounts were really steep. But the stories he told me about his customers...I mean damn. It was like he was a used car salesman but with furniture.
That's not the same laptop at 5:16. NX.KRPAA.002 vs. NX.AT0AA.00A. They have similar specs, but that's a 2023 model CPU vs a 2020 model CPU.
Everyone is keeping the poor poor
...but in Rent a Center's case, they're keeping morons poor.
I was poor. I just started taking my time on purchases and thinking is this a good deal where can I find it cheaper
The capitalist class is
I accidentally slipped, fell into one of these stores, swiped my credit card and walked out with a new TV. I blame the store 100%
No the poor keep themselves poor with these purchases.
Damn this channel is so great.
I went there once when I was young. It's not that hard to see they overcharge. They target the uneducated.
Another large clientele is that of government workers on "temporary" assignments who get exorbitant "use it or lose it" housing allowances. Back in the late 1990s and early 2000s, my brother did several temporary assignments from the Madison, Wisconsin SSA field office to the Social Security Administration's HQ in Baltimore. Even that long ago, he received a huge amount to rent a beautiful LARGE apartment and furnish it. Don't get me started on the ridiculous per diem that WASN'T use it or lose it...almost all of which went into his savings account. EDIT: naturally, none of it was taxable, as it was deemed "for the convenience of the employer," like driving a work truck or a squad car home at night.
I find myself at a crossroads, uncertain whether to liquidate my $150,000 stock portfolio. I'm seeking advice on the best strategy to capitalize on this current market.
Well the bigger the risk, the bigger the reward and such impeccable decisions are better guided by professionals
Yes true, I have been in touch with a financial advisor. With an initial starting reserve of $80k, my advisor chooses the entry and exit commands for my portfolio, which has grown to approximately $550k.
I’ve been looking to switch to an advisor for a while now. Any help pointing me to who your advisor is?
“Angela Lynn Shilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I searched for her full name online, found her page, and sent an email to schedule a meeting. Hopefully, she responds soon. Thank you
I don't blame them as I blame the poor. My family came to the US as Chinese students, poorer and didn't have welfare like Americans. We lived in the ghetto, but the difference is that we weren't stupid, and were very frugal with our mone. We studied and worked our butts off and we now live the American Dream while the others stayed with their foolish way of life.
There has always been a universal truth that a fool and his money are soon parted. In this case, the poor signed themselves up to this, nobody forced them. This is the same as pay day loans. They are stupid and irresponsible, and they need to accept the responsibility that. My family never touched any of these, and choose to live below our means. No furniture? So what? We slept on the floor. It's strange to listen to these first world problems like people are entitled to this and that.
Don’t tell poor Americans that, they’ll just cry about how evil capitalism is and how we need socialism
I agree when it comes to things that one can live without, or with less nice versions of.
However, some things that are basic necessities like Rent have a definite floor in most areas, and likewise many jobs basically require a car to work at.
So while I agree with what you said, there is a level that one can’t be more frugal than they are just due to minimal necessities and need to get to work.
Your family was poor but educated these people are poor AND uneducated, that is the big difference. The lack of education often isn't their fault just external circumstances.
How disgusting to assume that if you live in the ghetto you are stupid 🙄
Nobody forces drug addicts to use drugs. They do it by choice.
Does that fact, then, absolve drug dealers of any moral responsibility?
I think the whole "choose" in "choose to shop there" is doing a whole lot of heavy lifting here
I live down the street from a RAC, you should see that they toss out. Hilariously my city has terrible code enforcement policies where they will write you up for just about any dumb reason. My normal patrolman write them up for having a couch next to the dumpster and slapped the notice on the brick wall. Not to mention they toss premo shipping pallets. Save yourself the money and dumpster dive. Additionally go talk the managers/service crew. RAC is all about moving inventory. I'm pretty sure they wouldnt mind giving you something for a very discounted price
Lived in Louisiana my whole life. I’ve lived in the south of the state which is where all the money is, and the North of the state where all the poverty is. North Louisiana is a backwards shit hole where racism is very much alive and well and while it’s nothing like it was when I was a kid in the 80’s and 90’s it’s still bad. South Louisiana is literally like a different country in terms of quality of life for the residents.
If you don't have credit or if it's low for loans, this is the only avenue to purchase stuff you need at home. Same with pay day loans. And if you don't have a checking account which direct deposit is free, you have pay cash at a liquor store to get your money. It's hard to get out of poverty when everything you do keeps you poor. The system is wack
That's not 'the system' taking advantage of people. That's the consequences of laziness keeping themselves down. You can literally open a bank account with $20. Even if you didn't keep enough in the account to avoid fees, Wells Fargo charges $10/month for a basic checking account. How is that not a better option than check cashing places? There is no excuse for such irresponsible behavior.
It has to be a health problem or a family problem to have someone be so destitute they can't open a bank account with free direct deposit.
Thank you for shedding light on this issue.
I was born and raised in Milwaukee, WI. I had no idea why there were no rent a centers and a bunch of get it now locations in the city.
Ps.
Those of you wondering where the long form videos went, they have a 2nd channel called Broken Business Model. Thank me later.
They never had anything on this channel longer than these videos. You just want attention from whoever is making these videos.
@@bnwo there are older videos two to three times as long
"Making bad choices leads to bad life."
"Telling people that their bad choices are bad makes you a bad person."
I ran out of sympathy for the VAST majority of people a long time ago.
6:10 "$20 per week might sound a lot less than $80 per month"
And falling straight into another trap, of course, since that's more like $87 for an "average month".
Kerching, another ~10% "hidden" cost. 😞
I worked with a lady who got all her furniture and electronics though Rent a Center. I had to explain how bad she was getting ripped off. She didn't think she could get a loan because she had bad credit. I asked how she knew she had bad credit? She just said she never thought about it. She was a poor POC living in the hood. She just thought because she was black nobody would give her credit.
Sounds like the poor people make themselves poor. If you can Google all this. So can they. 😅
The poor are keeping the poor poor 🤣
A rent-to-own chain went bankrupt here not long ago and even at the clearence prices there was nothing enticing enough to buy with how overinflated their prices are.
I dont blame rent a center. Its those who shop at rent a center knows they are paying ridiculous amount of interest. WANT > NEED. When the item taken away, they blame the company. People who kakes poor decisions love to blame others for their mistake(i.e government)
No one is forcing you to purchase these crazy expensive items. It was YOUR decision.