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Why Not Lease Itscam!

1
J Aug 04, 2018 Review updated:

My husband and I purchased two items at Kmart and we where given the option to have 1, 000 in credit. We purchased two items that where 160 and one for 199. Kmart told use that the payments would come out every month and at the end of the five months we would be paid off. Right away instead of taking out two payments why not lease it was taking out three. They where paid each month and continued taking out money in august two months after they said the contracted was to end. Now they say I have to pay the full price of the item or return them and Kmart wont deal with it. They say it was a lease which is stupid because we where sold the extended warrenties on items which we would not have purchased if we where ever told we did not own the items out right at the end of the term. They breached the contract in the begging by taking extra payments that where not stated on the contract and when I asked them to send a list of the payments they received they wouldn't. The lady said if I paid for the items in full they wouldn't charge anymore and I told her to send that in writing to which she refused. I think they need to be sued. I will be talking to an attorney and Kmart. This is not ok. I have a reciept that says when the payments end and it appears that I will own the item at the end.

Responses

  • K
      Aug 06, 2018

    5 months is the minimum lease term, at the end of the 5 months you are given the option to buyout the lease at 55% of the purchase price or to continue leasing at 18%. Each continued payment will reduce the buyout amount by 1% per payment, which means a lease and continue for 3 1/2 years before the buyout amount to match the lease payment amount, making the total paid 756% of the total purchase price. Your lease for $359 plus tax will turn into $2, 714.04 plus tax if you don't buyout before the buyout payment to match the lease payment. You really should read everything before considering financial services and not to go on the word of someone who isn't a CPA, or at the very least taken a course in personal financial concepts. I haven't read everything about WHY NOT LEASE IT, but I'm pretty sure somewhere in all the paperwork you received they mention that buyout is required at the end of the lease. From what I've read on WHY NOT LEASE IT, I wouldn't recommend it. Even if someone were to buyout the lease after 5 month it's still a whopping 45% markup.

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