On the surface, this strip may depict Compa a bit dim:

Click to view post.

But is he so dim after all? Let’s explore!

OK. Let’s say this is your current computer:

Ye olde computer with .000001 MB memory

But it’s not getting the job done and it goes kaput. You need a computer to do work.

So let’s say you now have your eyes on this computer:

Apple Mac Pro (click to view its awesomeness)

And let’s say you don’t have the cash on hand to purchase this new computer (imagine that).

The Rent-to-Own Circle goes like this:

• Rent-to-own is a good idea because you don’t have the money but you need the computer now. And in your mind it makes sense because you’re making some sort of payments on it so one day it may be yours. But…
• Same-as-cash is better because you can not pay interest if you pay off by the interest-free deadline. And you can use the computer now. But…
• Charge-to-own is better because, although you pay interest, the interest is smaller and you build your credit. And, of course, you can hop on that Mac today. But…
• Save-to-own is better because you don’t put yourself in the hole. Very wise decision. However, you it’s only truly wise if you had thought of it a year ago. No money in that skinny old savings account now. Besides, if you shell out a handsome chunk of cash for this model, something tells me a new model will come out soon, making this model obsolete. So…
• Rent-to-own is a good idea. You can use the computer now and, if it becomes obsolete, rent a newer version.

In a way, the same could go for houses. Additionally, I have heard some of those financial big brain guys say that it is wiser to lease items that depreciate (i.e., cars). That throws me for a loop as well. Or a circle I guess.

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