The Consumerist has a very interesting story about a
complete ripoff scam store promotion from Kelly's. Apparently, they lease out Wii consoles, allowing you to pay off the thing in monthly payments of only $79.99. This means that after 12 months, when everything is said and done and you now own your Wii console, you'll have paid a whopping $948.
Of course, if something were to happen a couple months in and you couldn't make your payment, they'll take back the console and you'll be out a boatload of cash. That must be the
convenience of lease-to-own ...
Reader Comments (Page 1 of 1)
Co @ Feb 29th 2008 4:18PM
If they lease ONE of these they need to be placed in jail. Hell, the customer needs to be put in jail.
gb @ Feb 29th 2008 4:19PM
You would be surprised how many ignorant consumers fall for this. It is the ultimate stupid tax.
Protip: If you cannot pay cash for a non-essential item, don't buy it.
Croove55 @ Feb 29th 2008 4:40PM
..... so jet-skis are BAD when you can't pay rent. I needed you about three days ago. Also, I live in Arizona*.
*A lie**.
** The whole thing is lies.
theb1rdm4n @ Feb 29th 2008 11:04PM
correction... The cake is a lie :)
Fred @ Feb 29th 2008 4:42PM
...and if you only make the minimum payment on your credit card, you'll end up spending a fortune to pay off a couple hundred bucks.
...and if you rent-to-own, you're going to pay a ridiculous amount more than if you just saved the money and bought it outright.
...and if you tell the car dealer how much you want your monthly payments to be, they'll get you that payment for 72 months instead of 60.
...and on and on and on with credit scams.
If this sort of "offer" is a surprise to you, you still live with your parents.
Ghen @ Feb 29th 2008 8:25PM
There's a fine line between credit and loan sharks. This falls squarely in the latter.
joe23521 @ Mar 3rd 2008 1:01PM
When you lease to own a car, I'm pretty sure you don't end up paying five times the car's MSRP.
PSN: KillaKornbread (the shirt is a lie!) @ Feb 29th 2008 4:47PM
do people actually do this? i mean how stupid do you have to be not to know how much of a rip off these things are? if i cant afford to pay for a whole Wii at one time, then i more than likely shouldnt be buying video games at all anyway. whatever happened to putting money away for stuff? if i know something is coming out that i want, i start little funds for it until it comes out so i can buy it without an afterthought.
Brandisis @ Feb 29th 2008 4:55PM
This is a complete scam, but I'm betting the folks that came up with this "offer" were thinking more about the poor people who couldn't find a Wii in the stores and something like this would be the only way to get one for themselves, or for their kids or something.
Safiel @ Feb 29th 2008 5:13PM
People really are this stupid. My brother in law teaches at the UW. A while back he did a math course in which they took a day covering interest rate problems. They did a bunch of real world problems with credit cards/loans showing things like how paying the minimum payments on a credit card will end up with you paying for the original item 2+ times over. On the way out he heard two talking to each other:
Student 1: "That credit card stuff sure adds up"
Student 2: "Don't worry, it's just math it doesn't work that way in the real world"
Jeff @ Feb 29th 2008 5:16PM
hahahahaha awesome.
joe23521 @ Mar 3rd 2008 1:03PM
I hope that "W" stands for Washington, not Wisconsin.
Vogelfrei @ Feb 29th 2008 5:15PM
Welcome to rent-to-own. Poor people with no concept of money management have been paying three to four times the value of everything in their house for decades.
I think it sucks, but gb is right -- it's a tax on stupid, and caveat emptor.
James @ Mar 3rd 2008 11:44AM
Yeah, it's hilarious right up to the point where they can't afford food, and you and I get to foot the bill via food stamps/WIC/etc, or until they can't pay the rent and wind up flushing another apartment/home down Section 8, or... well, you get the idea. Normally I'm all for seeing a fool parted from his money, but there's always a little voice in the back of my head telling me that I'm going to be carrying that fool on my back once he goes broke.
Jeff @ Feb 29th 2008 5:17PM
people who can't do basic math to figure out how much of a total scam that it, also probably don't read The Consumerist.
shame.
zain_vo @ Feb 29th 2008 5:32PM
Yay for the consumerist!
nintendo @ Feb 29th 2008 6:39PM
Whoever makes these so-called "deals" are bunches of retards. That is NOT a biased opinion but pure unadulaterated truth. I've seen cheaper prices on ebay and amazon. Glad I got mine when I did; I only paid $315.00 for it!
nintendo @ Feb 29th 2008 6:39PM
Sorry, "unadulterated".
Alex @ Feb 29th 2008 9:33PM
In Argentina big stores were selling Wiis for 1000 dollars, and they weren't even chipped! (by comparison, MercadoLibre sellers sell unchipped Wiis at 450 dollars and the "official" price is now about 700 dollars). And you weren't even allowed to lease. Of course, this is what happens when you are ignorant: you do stupid stuff. Like buying computers with Windows Vista Starter that doesn't even let you open three windows at once. Ugh!
WiiFTW @ Feb 29th 2008 9:53PM
Hmm...I was under the impression this deal is aimed at people who can't find Wiis anywhere and MUST HAVE IT NOW. I'm also going to assume that they set these aside from their normal stock (do they sell them normally? not familiar with this retailer). It might not be so bad if the lease would only end up costing $50 - $100 more especially with the demand.
Off topic: salivating during wait for Brawl. Anybody got any unwanted GC controllers lying around? FYI, I'll pay a $79.99 monthly payment for 12 months for 4 controllers.
steve @ Mar 1st 2008 6:11PM
12 months, are you kidding me!
_____________
www.HowToGetFreeWiiPoints.com
Deozaan @ Mar 1st 2008 8:26PM
I have an even MORE impressive deal!
Pay yourself $79 a month for 3 months and you'll have bought yourself a Wii for 1/4 the price in 1/4 the time!
Deozaan @ Mar 1st 2008 8:30PM
The "offer" isn't so much a surprise as the fact that people really are stupid enough to do this so that Rent-To-Own places still have great business.
Then again, I suppose a rent-to-own business only needs to sell 1/4 what normal retailers sell because it's a 400% markup.
Deozaan @ Mar 1st 2008 8:31PM
Comment system is so messed up! The above was a reply to Fred when he said:
"If this sort of "offer" is a surprise to you, you still live with your parents."
Ehud @ Mar 21st 2008 9:37PM
Rent-to-own places usually try to make 3-5 times the cost of the merchandise from rental sales. This is not including the price they paid for it and the cost to offer the services, which can be substantial. Now, before you start hating on this comment, have you ever priced what it costs the auto mfg. to make that car? Then add the financing. Same goes with brand name computers, to make them is cheap then add on the retail price before a 3-5 year financing at a 29.99% average, which can add up real quick.
Heck, buy a house and look at what the bank will charge you over serveral years, you say "yeah, but thats a house", doesnt make it any less criminal in my opinion. I always thought the more you spent, the better the price, not so with the home. Yes there is resale value etc.., but not so good in most markets today. Anyway, the actual cost of food, clothes etc are cheap compared to the markup.
There are lots of overseas factories making goods to be sold at 3-5 times the cost here in the states, but you dont know about them so lets pick on the RTO dealer because we actually know what the goods cost without any effort or research.
Same goes for food costs, generally a 3-5 times the cost mark up is standard for most businesses if you take the time to research. Seriously, its sickening when you actually do the research and learn how much everything is retailed at once you know the actual cost. Everyone is making their profits, the RTO business just cant hide how much their merchandise cost.
But until I make my own clothes and expand my garden and ride my bike longer distances, I guess someone overseas working for 25cents/hour will be making my clothes that I still pay a 3-6 times cost mark up for =/ (and lets not get started on oil based products profit %). Enjoy the weekend.