Disaster has struck and your refrigerator has broken down right when you have some big bills to pay such as your motor vehicle registration and your annual insurance rates. The problem is you can’t really live without a refrigerator and considering you are a little short of cash, renting one is the best solution.
There are many appliance rental companies in your local area so you begin to shop around for best prices and you have narrowed down to 3 local companies who will help you. The only problem now is choosing the right company and rental agreement that provides the best value. Here is where many people get trapped in rental agreements that at first glance look great and within budget, only to quickly find out the initial price was misleading. Now they are stuck with a long and expensive rental with many hidden costs.
Below is a list of hidden costs that are common to the appliance rental industry.
Long Rental Agreements
Many companies only offer long rental agreements of up to 36 months so their initial weekly rental rates look very low compared to their competitors. When you do the arithmetic of the low weekly rate over such a long period of time the resulting costs are phenomenal.
Most people only need a short rental period of between 1-6 months to cover the amount of time to save and buy a new appliance. MacRae Rentals is one of the very few companies who offer short appliance rental agreements.
Here is another hidden cost that is not advertised on the weekly rental rate of appliances. Are you aware that most rental companies charge a deposit of approximately $100.00 on all of their items and will hold that money until the end of the agreement? The deposit is similar to a bond so if the appliance is not returned in perfect condition, the company gets to keep that deposit. After 3 years of use the majority of appliances will not be returned in perfect condition so you can pretty much wave that money goodbye.
At MacRae Rentals, we don’t charge a deposit fee as most of our rental agreements are short term.
In addition to the high initial deposit is an establishment fee of around $35.00. It may not sound very much but why would a company need to charge an establishment fee and an initial deposit? Again, this is another cost that is not included in the advertised rate to which we feel is completely unnecessary and misleading.
Monthly Account Keeping Fee
On top of your initial payments and your weekly rental rate is a monthly account keeping fee which seems small at around $3.50 but added up over a 36 month period, ends up costing you $126.00.
Monthly Payment/ Credit Card Processing Fee
This monthly fee is generally around 1% and we aren’t really sure what the difference is between a monthly account keeping fee and a monthly payment processing fee. However this is a common practice within the appliance rental industry and over a 36 month period, this fee adds up.
By the time you have completed your lease with most rental companies, your total payout could escalate to a whopping $4,050.00 for a piece of equipment worth $1,600.00.
We pride ourselves on the fact that the prices we advertise for all our equipment do not include any hidden costs. When you sign an agreement with us whether that is short or long term, you will not be slapped with any extra hidden costs.