Rent to own, aka rental purchase or rent to buy is the transaction between a buyer and seller in which the buyer purchases the product and pays on a monthly basis. At first, this may sound like a great idea, especially for those who cannot afford to purchase outright. However, after looking at the numbers, purchasing a shed on rent-to-own can be very costly… Let’s dig into it a bit below.
1. The Cost of Rent to Own Sheds
Rent to own sheds can cost anywhere between 25% to 65% more than buying a shed outright from a builder. A reason for that is because when you are buying a shed using rent-to-own, that means you are buying a shed from a “Rental Shed Company”.
These companies buy storage sheds from competitors and rent them out for a ridiculously high-interest rate. That being said, purchasing a shed outright can save you tons of money in the long run.
For example, purchasing an 8×12 shed can cost around $3,000 if you buy it outright, however, if you were to do a rent-to-own payment plan, you could be paying up to $6,000 over the course of 4 years!
2. Rent to Own Shed Repossession
If for any reason you cannot come up with a payment by the due date that you had contracted with your rent-to-own shed provider, they are legally allowed to come and repossess the shed. This can be a big risk to someone who does not have a stable job or income, so make sure if you are going to do rent to own, ensure your payments are covered until the maturity date.
3. You’re in a Contract
Just like some people hate their phone contracts, rent-to-own sheds bring those to another level. You are in a contract with the shed company to pay a certain amount back every month by the contract maturity date. This means you cannot sell the shed until it is fully paid off, and also some shed companies do not allow you to pay the shed off in full without a fee.
Can Rent to own sheds be good?
In some scenarios, a rent-to-own shed can be suitable for some. This includes those who currently pay monthly storage unit fees. A shed may be a more affordable and convenient option with the shed being right on your property.
Another scenario would be if you were in need of a storage unit for a certain amount of time, you can rent out a shed and simply have the company pick it up once you don’t need it anymore, don’t tell them we said that. 🤫
Buy Your Shed Outright with Sheds Unlimited
Now that you know why you should not purchase a rent-to-own shed, it’s time to look at purchasing it outright. Purchasing your shed outright will leave you without any pesky monthly payments, peace of mind knowing your shed is paid off, and more. Explore our selection of in-stock storage sheds below or request a free estimate here.