Rent | Own | Rent-To-Own. Which to choose?
Before you even get to choose your appliance, there are so many options about how you buy - hire, buy or RTO.
Here's a helpful guide.
Rent, also known as hire, is getting the use of a product, for a certain period of time, in return for a regular payment, often weekly or monthly.
Rent-to-own is an alternative offered by many retailers. In this case the customer pays a regular payment; part of that money goes towards the asset and part towards an interest charge.
After a certain period of time, the customer then owns that product.
The famous oil tycoon John Paul Ghetti once said “If it appreciates buy it. If it depreciates lease it.”
The fact is, rental is on-trend. People of all walks of life are renting items that they do not wish to own or cannot afford to pay for outright; from mobile phones, to cars, to designers dresses!
Whether necessity or choice, people are opting to rent.
That said, for a TV, we believe, if you have savings and can afford to buy a suitable TV set outright, then you should do so.
All routes give you access to something you want or need for your family home.
Pro – No debt, free repairs, affordable regular amount
Con – You never own the product
Pro – You own the product
Con – Requires cash upfront and you’re liable for for repairs/replacements.
RENT TO OWN
Pro – You eventually own the product
Con – Interest rates can soar as high as 275% and the product has depreciated significantly by the time you own it. Also, watch out for hidden fees in your contract (repairs/delivery/installation/repossession fees/insurances/late payment)
Please always check the FCA register if you choose to rent or RTO. Any retailer providing such services need to be regulated by the Financial Conduct Authority.
You can check easily on the FCA register here.
The retailers website should clearly display their FCA registration number somewhere i.e.
hiya! is a trading name of Lifestyle Rentals Ltd. Registered in the UK under Company No. 09603143
Regulated by the Financial Conduct Authority, Registration No. 713024
Also if the company is RTO – they should clearly display their APR % and a representative example. You can see what the APR actually means using a calculator like this.
Nowadays, you can rent almost anything – other peoples cars, a spare room, a dog to walk for the day! As much as we love pooches, we at hiya! specialise in all things digital, starting with Smart TVs, with new digital tech to be added soon.
Other retailers have a full store of appliances from microwaves, to sofas. Do be mindful of the compound impact on your finances when entering into several credit agreements.
It is difficult to compare like for like as retailers provide different products, brands, sizes and specs. You should take time to shop around the ‘safe retailers’ who offer the model that suits you best.
For TV rental/hire, you should expect to budget anywhere from £5 per week.
Eligibility for credit agreements can be tricky. Some reflect on the customers credit history for example. Some rental firms operate the same back covering procedures.
hiya! however simply need to satisfy themselves that you can afford the repayments and reside in one of the areas we cover.
The maximum term for rental agreements is 18 months and most agreements whether rent or RTO, should offer a 14 days cooling off period.
Contracts may define how long you a legally bound into an agreement for – or they may simply define when you are eligible for upgrade.
hiya! for example have 12 month rental agreements, which mean you can upgrade after 12 months, every 12 months! Customer can hand back their TVs if it becomes unaffordable for them and they will not be fined.
hiya! are unique in that applicants are not assessed based upon their credit score, that is their past behaviour.
Instead we are interested in your future financial wellbeing, so we look at our applicants ability to afford repayments today.
Some retailers only allow you to apply inshore or over the telephone which can cause time delays.
However, with most online retailers, the process is quite fast.
hiya! have perfected the process so that the TV choices can be scanned within seconds. The online application form takes 5-10 minutes
Successful applicants will be sent an agreement to sign within the hours, then our underwriters assess the application, often, the same day.
A delivery day is then agreed with you. This is often within a couple of days of applying!
Our real purpose is to improve the financial wellbeing of our customers.
As such we run regularly competitions/prize draws, offer free weeks of rental when you tell your friends about us.
We work with Nationwide partners who are centred around helping improve your income (see www.entitledto.co.uk) and bring market leading products at exclusively low prices to our customers (i.e. www.lookaftermybills.com)
The Trend To Rent. What People Rent & Why People Rent
A Global graphic showing the rise of the rental trend.
Also see our WHY RENT page which includes typical added costs with rent-to-own Companies and a representative example of depreciation when you enter a rent-to-own agreement.