Rent to Own storehouse Sheds - Why You Should Think Twice

Rent to Own storehouse Sheds - Why You Should Think Twice In the storage shed business, the rent to own shop has made a big splash. You can hardly drive straight through any town these days without see many road side displays of rent to own storage sheds, most of which advertise "Mennonite Built". I would like to point out a few of my personal observations and feelings concerning this marketing tool that is being used, and quite successfully I might add.

We have been In the storage shed enterprise for approximately 20 years, I have personally taken the time to study the possibility of tapping into this supplementary shop myself, and have been approached by lenders who are more than willing to work with me in this endeavor, but I have a qoute with gift this, generally my conscience. Let me justify this Rent to Own deal in a puny detail. Most all business's gift this pushes the no credit check and low monthly payments. This sounds good, doesn't it! It's not until you assuredly start to look at these deals do you assuredly get a picture that what of what you are signing up for. Usually the Rent to Own deal will wish you to pay a deposit (depending on the size 0. 00-500. 00 down), plus the first months payment. All these deals have a rather lengthy and detailed ageement you must sign, you assuredly need a lawyer to result all the fine print. All the contracts I have seen, Include: a) paying payments for 36 mo.s b) Early pay off is allowed, but any cost you have paid only 60% will be applied to the customary purchase price c) In the event of repossession of the shed, lose all deposits and payments d) If your shed is repossessed, the cost of the dismissal of the shed is expensed back to you e) Any contents of the shed, if repossessed, will become the property of the company f) Any damage to your property during delivery or pick up, or yard is your responsibility g) A . 00/mo. Late fee is assessed for any late payments On face value these do not seem so un-reasonable, although most citizen doing these deals probably never understand or care about these details, but the real kicker is the interest rate on these structure is Usually nearby 35-40% of financing charges. Lets break that down for you: 00.00. storage shed 4.00 in sales tax 84.00 total cost of barn Doing a Rent to Own on a 84.00 will cost you about 5.00/mo multiplied by 36 months you would assuredly pay about 00.00 for that same barn. Now I build 75-100 of these storage sheds every year and my behalf margins on this same storage shed would be about 0.00 if I was lucky. Something does not add up here I can make 0.00 or about 20% and the rent to own associates are production about 00.00 and that's if you do make all the payments. If you fail to make the cost and it's repossessed, they keep the money you have paid and resell the same barn over, on the same deal. Talking about compound interest I assuredly have no qoute with associates production a profit, but my real qoute with Rent to Own is that I feel we are taking benefit of people. Let's face it anything with any financial insight can see this for what it is A Rip Off. In most cases these are citizen have with poor or no credit. Most of the time they are putting what they want ahead of what they assuredly need. Much like "You Tote The Note" car lots and "Cash Advance" businesses the "Rent To Own" shed enterprise preys on citizen who have made poor choices, don't know good or unfortunate condition have put them in bad financial situations. In any case I think production money off citizen that can least afford to be paying absorbent interest rates. If they can't gain reasonable financing or save and pay for out right, then they probably don't assuredly need it. Rent to Own storehouse Sheds - Why You Should Think Twice