Rent to buy laptops: Weigh your options

Is your laptop on its last legs? If your bank account is a little stretched right now, a rent to buy laptop could be appealing.

Rent to buy enables you to pay instalments – whether weekly, fortnightly or monthly – for a set period, at the end of which you will own the item. Whether there is a balance to pay before that rent to buy laptop becomes yours will depend on your contract.

Although the thought of paying smaller amounts over time is more attractive when you are short on cash, it can be a very expensive way to buy goods.

 

 

Rental payments are typically higher than the cost of leasing laptops, though you will own the device at the end of the rental period.

The final figure can often be more than you would have paid upfront, however. For example, if you decide to rent to own a laptop that costs $1500 outright and agree to pay $60 a fortnight over two years the laptop will end up costing you more than double the retail price. You can use the Moneysmart rent vs buy calculator to get an idea of the difference between renting and buying a laptop.

You also need to look at any fees and charges, or other conditions in the fine print. You may, for example, be responsible for any damage to the laptop or have to pay in full if it is lost or stolen, so you might need to factor insurance into the extra costs.

Ensure you look closely at the proposal before signing up for a rent to own laptop, or any other lease to own laptops.

What about Buy Now, Pay Later (BNPL)?

Buy Now, Pay Later (BNPL) is another popular option if you cannot afford the full price of a laptop upfront. The main difference between choosing BNPL over a rent to own laptop is that the repayments are spread over a much shorter time.

BNPL typically involves making four interest-free payments over eight weeks. The benefit of BNPL is that you won't pay interest on the purchase. However, if you miss a payment, you could be subject to late fees and potentially damage your credit score.

 

 

It isn’t a bad option if you only need a short-term solution to cash flow issues and are sure you can pay off the laptop in the required time. However, if you think this might stretch your finances still, it could be worth considering a laptop lease.

If you have any issues with a rent to buy laptop, please lodge a complaint with us and we’ll help you handle it.