Renting a TV?

Discussion in 'Mac Basics and Help' started by nsutt22, Aug 5, 2006.

  1. nsutt22 macrumors regular

    nsutt22

    Joined:
    May 5, 2005
    #1
    In 3 weeks time i will be once again off to college. Now a sophmore I have a house with 5 buddies. The big question is ofcourse, what TV and how are we going to pay for it. Heres my question, is something like renting a TV a bad idea? Something like Rent-a-center would prolly get us a better TV then us all chipping in and buying one. We have decided to allocate about 800 bones towards a TV would we be able to get a better one by renting? We want it big and new ofcourse.
     
  2. reh macrumors 6502a

    Joined:
    Oct 24, 2003
    Location:
    Arkansas
    #2
    Renting is usually a bad idea, but it doesn't hurt to run the numbers. Figure out how long you'd be renting the tv for and how much that would cost. Compare that figure to the cost of just buying a tv outright.
     
  3. Aperture macrumors 68000

    Aperture

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    Mar 19, 2006
    Location:
    PA
    #3
    Renting is mainly for people w/ bad credit.:) Still see what they say though.
     
  4. it5five macrumors 65816

    it5five

    Joined:
    May 31, 2006
    Location:
    New York
    #4
    Just buy. Renting a TV seems tacky and expensive. If you buy one now, you wont have to keep renting every year you go back to college too.
     
  5. reh macrumors 6502a

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    Oct 24, 2003
    Location:
    Arkansas
    #5
    Oh, and remember that after you've made allll those rental payments on a TV for a year, you'll have absolutely nothing to show for it in the end. Renting is a black hole.
     
  6. MacFan25863 macrumors 6502a

    MacFan25863

    Joined:
    Jun 20, 2004
    #6
    If you each put in $200 (which is about the cost for a small TV), you can get a pretty nice HDTV. I went to WalMart today and saw a Sanyo plasma 32 inch HDTV for like $899. They also have a 52 inch RCA HDTV for pretty much the same price, if you don't mind it being huge..
     
  7. nsutt22 thread starter macrumors regular

    nsutt22

    Joined:
    May 5, 2005
    #7
    I see the renting is prly a bad idea. I just thought for like 600 dollars renting we could get a Sony 52" HDTV where as with 600 non renting and buying the TV would not be comparable. We would be renting for like 8 months.
     
  8. reh macrumors 6502a

    Joined:
    Oct 24, 2003
    Location:
    Arkansas
    #8
    Yup, that does look better on the surface. BUT by buying, you'll own a $600 TV at the end of eight months instead of just paying $600 for the use of a TV and then have to give it back.
     
  9. Lau Guest

    #9
    I rented a video player back in the day with my flatmates, and it was fine. It may make better financial sense to buy and sell it on later, but don't forget that arguments happen. What happens at the end? What happens if someone leaves the house early, will you all buy them out of the deal? I'm not saying it will be a problem, but sometimes renting stuff can be simpler when you're sharing with a load of people.
     
  10. Phobophobia macrumors 6502

    Joined:
    Dec 1, 2003
    #10
    Just rent it. It's everyone's TV, why not make it a nice one?
     
  11. GoCubsGo macrumors Nehalem

    GoCubsGo

    Joined:
    Feb 19, 2005
    #11
    Actually there are some misguided facts being spewed here about renting. Renting being a black hole is not exactly true. Renting and never having anything to show for it is also only half true.

    Since you mentioned rent-a-center I can speak from experience as we rented quite a bit of furniture from there at some point for a client who needed a place furnished for 6 months. For some reason the company opted to rent the furniture, electronics, appliances, etc from them. Here is how rent-a-center generally works.

    You rent say a $2000 tv. They don't rent plasmas or LCD TVs even (at least they did not 6 months ago). They say those are too expensive to repair if they get screwed up. Your rental payments say on a $2000 TV would be about $200 a month give or take. A good portion of this goes towards principle (which is towards the cost of the TV) and the rest goes towards interest. In the beginning you pay more towards interest than principle, which means your TV drops in value faster than it drops in the balance owed on the TV. Say you've paid $200 a month for said TV and in 2 years you're only paying towards the TV as the interest has stopped. While this isn't "credit" it is treated a lot like credit with the exception of the lack of reporting to your credit report and the lack of "GOOD" credit being necessary. In 4 years you can pay for that $2000 TV, but in the end, after that so-called loan is fully amortized (meaning you've made every scheduled payment and paid all interest) you own the TV outright. Yes, you can and will own whatever you rent from rent-a-center if you hang onto it long enough. I can tell you that for one of the items rented the company paid about $2000 more for the item than they would have had they actually bought it outright. Had they financed it on a credit card at a standard interest rate, they you could pay as much as $1000 more for the item over the life of the loan than they would have had they bought it outright.

    What people like to pop off about is that renting is generally a bad idea because you pay more per month for the item than you would if you financed it. However, many people fail to mention that if you purchase a $2000 tv on credit and your rate (like many 1st time credit card holders pay) is about 18% then your average payment would be about $100. Say you choose to pay that off in 2 years, you will pay approximately $2400 for your $2000 TV. In life people who use credit to purchase things need to realize if paying $400 more for an item is worth it to them to have it now.

    In no way am I opposed to credit or hell, even renting. The problem with renting is that if you don't hang onto it then like a leased car, you have nothing to show for what you paid on for a period of time (and people lease cars all of the time). You may have the occasional "remember that awesome 60" tv we had our freshman year of college?" But to hang your hat on a memory for a wide-screen project television is probably the least of your desires today. In the end, no one gives a crap what TV you had or have. ;) But if you choose to hang onto that tv until it's paid off, or pay more on it so it pays off faster then great. But try to sell that 60" wide projection tv that is 4 years old (and then actually older because everyone wants the lcd, plasmas etc) you may get about $500 for it because of it's size and then nothing to show for it as rent-a-center will not report to your credit report which is ultimately what you'd like so that you can being to establish your credit safely.

    While renting is often reserved for people with questionable credit to say the least, it is also reserved for people who need something fast and do not have the funds to pay for it outright and do not plan to keep it...or maybe they do and the benefit of being able to get something with questionable credit and paying more for it outweighs the cost of paying double for something that you didn't have to.

    But, before you see the benefit in renting ask yourself that if you and your friends could only pull together $800, when you're off to college how will you all make those monthly payments?

    That's my long-winded answer. My short answer is take that $800 get a used, but nice TV (craigslist) and apply for a student visa or mastercard so that you can start to build your credit while you're in college. Tell your parents about it so that they can help you manage your credit. In life, having a good credit score will save you thousands of dollars in interest. When you buy your first house it could save you hundreds of thousands of dollars. ;)

    Good luck.
     
  12. ®îçhå®? macrumors 68000

    ®îçhå®?

    Joined:
    Mar 7, 2006
    #12
    I say you buy a really small TV and a projector. With the projector hooked up to the Tv (or anything for that matter), you can have a pretty damn huge TV for a fraction of the cost. If you buy a good set of speakers too, it can be an awesome cinema experience.
     

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