Posted on 10/21/2014 8:49:47 AM PDT by knak
CULLMAN, Ala. — The love seat and sofa that Jamie Abbott can’t quite afford ended up in her double-wide trailer because of the day earlier this year when she and her family walked into a new store called Buddy’s. Abbott had no access to credit, no bank account and little cash, but here was a place that catered to exactly those kinds of customers. Anything could be hers. The possibilities — and the prices — were dizzying.
At Buddy’s, a used 32-gigabyte, early model iPad costs $1,439.28, paid over 72 weeks. An Acer laptop: $1,943.28, in 72 weekly installments. A Maytag washer and dryer: $1,999 over 100 weeks.
Abbott wanted a love seat-sofa combo, and she knew it might rip her budget. But this, she figured, was the cost of being out of options. “You don’t get something like that just to put more burden on yourself,” Abbott said.
Five years into a national economic recovery that has further strained the poor working class, an entire industry has grown around handing them a lifeline to the material rewards of middle-class life. Retailers in the post-Great Recession years have become even more likely to work with customers who don’t have the money upfront, instead offering a widening spectrum of payment plans that ultimately cost far more and add to the burdens of life on the economy’s fringes.
The poor today can shop online, paying in installments, or walk into traditional retailers such as Kmart that now offer in-store leasing. The most striking change in the world of low-income commerce has been the proliferation of rent-to-own stores such as Buddy’s Home Furnishings, which has been opening a new store every week, largely in the South.
(Excerpt) Read more at washingtonpost.com ...
Too stupid to recognize the difference between need and want.
My wife wanted a freezer, and happened to be at a rent to own place with a friend. She noticed the cash price @ the rent to own place for the freezer she wanted was about $700, the rental price was well over $1,000. We went to Sam’s and bought it, and paid just slightly over $200 cash. The rent to own places are a real sucker’s deal.
I went into one of these stores once thinking I might rent something instead of buying. Promptly walked back out after determining it was a complete scam.
They were charging more to rent something than it would cost to buy it. Heck! for a fraction of the amount they were charging you could pull up craigs list and buy something better! I couldn’t imagine how they could stay in business.
But never underestimate the stupidity of Obama voters!
Decisions like this help to keep them “poor” and out of options.
Rather than go out and buy a $700 lift/recliner to aid in my hip replacement recovery, I found the local rent-to-own place rented one for $20 a week. Rented one for six weeks. They delivered it and six weeks later I called and they came and picked it back up. Done.
And, no, insurance wouldn’t cover it.
Any of these customers could save the weekly payment amounts for a few weeks and buy these exact items used or even on sale.
Am I supposed to feel sorry for these idiots?
Stay in business? From what I’ve heard they are doing a bang up business.
Keeping the masses in perpetual debt has been a control technique used by government since the beginning of government.
I think this is a far better assessment than the poor thing put forward in the article. This has more to do w/ lack of wisdom than $.
Two words...
Thrift shop.
Nobody NEEDS a sofa.
If I want something but can’t afford it, I simply don’t buy it. Why is that so hard for people to handle?
The cost is not because they are poor.
The cost is based on the fact that on average most of the purchase agreements will never be fulfilled by the customer. They will make a few payments, ruin the furniture, or sell it at a yard sale, and then quit making the payments.
Many of those that do pay require constant reminders of past due payments, and then there is always losses due to repossession of damaged furniture.
Customers that establish a good payment history are quickly granted credit at regular retail stores.
The very first thing I did was to do a “Find on this Page” search WITHIN the article looking for the word “job”. What happened was that the search popped OUTSIDE the article to OTHER WAPO articles.
NO JOB. Imagine that. MY conclusion is that mister Donald and miss Jamie BOTH have no jobs and are living on EBT....TANF, WICs, Section 8, ObamaPhone, utilities assistance, church pantries, or whatever. They don’t appear to be working. They are so worried that their freeloaded money doesn’t reach as far as their impulses. Color me “I don’t give a crap.”
I went to the goodwill store and paid $25 for a sofa.
I don’t care if the kids spill food on it or if the cats scratch it.
$25 cash money. No rental contract needed.
There are plenty of places that you can buy a new sofa for less than $1,500. And that is before you consider buying 2nd hand.
I don’t think it is sad, it is the mentality of having to have something right now. People used to save for something they want. I used to (still do).
There is nothing like paying cash to show you the true cost of an item. Many times I’ve been unwilling to buy an item for cash that I would have on credit. The money feels more real.
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