Aaron's considers relocating headquarters to Cobb County (leasing, lofts)

[0nyxStation]

Originally Posted by Mishap

Yes, they used to own Rimco rent to own wheels/tires. Generally they charge about 100% APR w/a 3 yr term so you pay about 3X the item if you run it to the end of the agreement. That said, the customer base usually has a sub 500 credit score and they have probably a 1/3 - 1/2 default rate and a very high percentage of fraud from these customers. Basically, they're loan sharks but the customers themselves are huge risks.

Ohhhh?? Its no wonder I never used them, and this company is based here?? Why is something like this legal? The seem like white collar criminals doing business with other criminals. Cobb can have them. Ive heard of Aarons but I always thought it was like BigLots or RiteAid

[AnsleyPark]

Originally Posted by 0nyxStation

Ohhhh?? Its no wonder I never used them, and this company is based here?? Why is something like this legal? The seem like white collar criminals doing business with other criminals. Cobb can have them. Ive heard of Aarons but I always thought it was like BigLots or RiteAid

They do serve a need by making it possible for folks who couldn't otherwise qualify or afford to obtain furniture, appliances, etc. to do so. No white collar crime involved at all. And, to boot, it's founder, Charlie Loudermilk, has done many good things for the city. Look him up.

[ATLTJL]

Right, it's not illegal, it's just one of those businesses that profits off the misfortune of others, like car title loans or payday loans.

Of course, it is legit that they probably do experience great losses and have to offset them with ridiculous interest rates. It's just a shame that super high interest rates get passed to the people who can afford them the least.

I remember years ago when the Playstation 2 came out, my friend wanted to check it out, but wasn't sure he wanted to buy it. He actually called Aarons about renting one. I can't remember what the exact price was, but I do remember that it was so high that you could buy a brand new one for less than it would cost to rent one for 3 months.

Almost everybody who uses Aarons would be better off putting the money they would pay to rent furniture into a savings account for a few months and then buying the furniture outright.

[DawgPark]

Originally Posted by 0nyxStation

Ohhhh?? Its no wonder I never used them, and this company is based here?? Why is something like this legal? The seem like white collar criminals doing business with other criminals. Cobb can have them. Ive heard of Aarons but I always thought it was like BigLots or RiteAid

Aaron's is successful because poor people want a couch and a washer/dryer ... and don't have the $1,000 to pay for it.

They charge high interest because poor people are high risk to not pay their bills and default. Similar to 8-10% interest rates on used car loans vs the 0.9%-2.9% new car loans.

It's all basic economics of supply and demand ... and 100% legal.

[arjay57]

Originally Posted by AnsleyPark

They do serve a need by making it possible for folks who couldn't otherwise qualify or afford to obtain furniture, appliances, etc. to do so. No white collar crime involved at all. And, to boot, it's founder, Charlie Loudermilk, has done many good things for the city. Look him up.

It's true.

When we were young and broke we rented a TV and a washing machine (not from Aaron's but from another company). We might have rented a sofa and a lamp, too.

Yes, renting can be expensive but without it we wouldn't have had the basics.

[ATLTJL]

arjay, my roommate and I rented a washer/dryer as well when we lived in a townhouse from a company called WEB. It was $29.99 per month for a full size top loader and dryer...not bad. I believe it was the same company that rents equipment to apartment complexes and other institutions that have washer and dryers.

That's legit.

Look how much it costs to rent washers and dryers from Aarons. Tell me if you think this is legit.

https://www.aarons.com/c-30-laundry.aspx

[ATLTJL]

You can lease a Samsung Galaxy tablet from Aarons for $59.99 per month: https://www.aarons.com/p-967-10-gala...with-wifi.aspx

Or just buy one on Amazon for $269. Amazon.com : Samsung Galaxy Tab 4 (10.1-Inch, Black) : Computers & Accessories

But it's actually more fair to say you could buy a used one on eBay for $182.99, since the one you get form Aarons probably wouldn't be brand new. Samsung Galaxy Tab 4 10 1 SM T530 Android 4 4 16GB WiFi Tablet Black | eBay

That's just an example, you can do this all day. Most of the items on Aarons, you could easily buy for the same that it costs you to rent from them for 6-12 months.

[whodean]

Yes, but you miss the point. Aaron's customers don't have the cash to buy it outright nor the patience to save for it.

[arjay57]

Wow, that is expensive, ATLTJL! It looks like the cheapest washer and dryer set they have is $70 per month.

Is that the going rate these days or are they more expensive than the competition? If so, you'd think it would hurt their business.

[cwkimbro]

Originally Posted by ATLTJL

arjay, my roommate and I rented a washer/dryer as well when we lived in a townhouse from a company called WEB. It was $29.99 per month for a full size top loader and dryer...not bad. I believe it was the same company that rents equipment to apartment complexes and other institutions that have washer and dryers.

That's legit.

Look how much it costs to rent washers and dryers from Aarons. Tell me if you think this is legit.

https://www.aarons.com/c-30-laundry.aspx

The problem is none of this makes the business not legit.

If you can find a better deal, by all means... go with the better deal. They are not immune to competition and consumers should check their options.

What they are doing is giving people more flexibility and taking more risks. They have to recoup more revenue to offset the risks, but many competitors with cheaper prices will not take on the risks without using high interest loans as well.

One thing that makes Aaron's unique from where you just rent, is you are renting to own. Something you are renting to own will likely cost more, because after 2 years you own it... not the business.

Whereas a rental company, common around college campuses, will rent out washers and dryers for 10 years and then sell them to be permanently placed in a rental that provides them. Aaron's doesn't get that added revenue from a washer and drier.

Now if someone only needs to merely rent a washer and a drier, then use they need to be a smart consumer and make sure they are seeking the right business/product. Aaron's isn't their place.

Another different type of business is a straight seller of washer and driers. The stores commonly have credit available for such purposes. They do credit checks and loans often have high interest rates and get really high with lower credit, but there is also a point where the higher interest rate doesn't offset the risk and they don't issue credit at all.

Aaron's model allows for these people to access the same goods at their own risk, but they also provide the added benefit that it won't further harm their credit if they don't have to go to a costly repo/collections if they can't pay.


Lastly, remember to put yourself in others shoes...assume for a second you have no ability to get credit from past decisions... and they still need a table, a chair, a way to do their laundry.... this is an option.

It is probably more expensive than a laundramat, but remember for some people their only price comparison might be the laundramat. If you have a family you might do 5 loads a week (@ $3-$4/load) in a laundramat is $15-$20/week + time you might not have... in a month that is $66 to $88. Now this doesn't include extra utilities costs and some people can do fewer loads and some will do more, but this shows how for some people...in some situations... given their options... this is actually a competitive, convenient option that doesn't necessarily cost that much more. Plus the added benefit of permanently owning a device that can last 10-20 years after paying for just 2, so long as they can keep making payments.

Now will I be doing this or suggesting it to my family? No. Will I tell people to shop around? Yes.

But you need to remember the real costs of risks to a business and the real choices some people actually have.