I am planning to upgrade my old desktop computer to a laptop. I thought rather than just buy one outright, I would look into the practicalities of renting.
Today I was in JB HIFI and spoke to a salesman that I seen at this particular store for quite some time.
I asked for the terms of the rental agreement and was told the following:
1. When I asked about ownership of the good at the end of the rental period I was told the title of the goods would automatically pass to me when the final rental payment was made.
2. I asked about repairs if anything went wrong with the laptop or the operating system software and was told the rental agreement would covers all repairs unless the fault was due to mistreatment or tampering with the operating system software. I would also be entitled to a loan laptop whilst the faulty one was under repair.
3. I asked what sort of accidental damage caused by a user, would be covered and was told that if I accidentally spill a mug of coffee over the laptop it would be covered under the rental contract as unintentional damage.
4. I asked if I could install additional software and possible upgrade of the laptop by more memory or larger hard disk drive. I was told that new software was not and issue as it would be considered normal in the use of a laptop. The upgrading of hardware would only be covered if i had the store (JB HIFI) perform the upgrades, which I thought was reasonable.
I was reasonably happy with what I was told and was told I could arrange a rental contract instore or do it online.
The rental company is Smartway trading as Flexirent. I believe this is the same company that does rental agreements with Dick Smiths.
So later I looked at the 21 page terms and conditions (T&Cs) of the rental contract online and found out the following:
In response to point 1 above,
The T&C says
' We are the owner of the equipment. You only have the right to use it.'
'Because this agreement is a rental agreement, you are not buying the equipment. This means you must choose one of the following options at the end of the agreed term:
1. Negotiate to purchase.....(which we may accept or reject)
2. Update and swap.
3. Return the equipment.'
'Notwithstanding anything contained in this rental agreement you have no right or obligation at any time to purchase the equipment.'
In response to point 2,
'With Smartway, you will be responsible for the maintenance and repairs of you leased equipment in most cases.'
'You must keep the equipment in good repair, condition and working order, normal fair wear and tear excepted, and must supply all parts and servicing required.'
And under the exclusions clause, 'We will not pay for, and you will assume and bear the risk of, any loss, theft or damage to the equipment, caused by corrosion, oxidation, rust, insects, vermin, dust, dampness, dryness, cold, heat, wasting, faulty workmanship or materials.'
If they do decide to repair the laptop you are required to pay a processing fee of $110 for a claim on equipment with an invoice price of $1000 or less. if you make a second claim then that fee becomes $220.
In response to point 3,
The T&C state that Smartway will cover accidental damage if notified by a incident notification form within 14 days. However, the T&C does not indicate what accidental damage is.
In response to point 4,
The T&C excludes any liability to loss or damage to software or data of any type whatsoever and any modifications are only permitted with their consent.
So if anyone is thinking about renting a laptop, I suggest you take the time to read the term and conditions of the rental agreement and don't take for gospel what a salesperson tells you.
This is not a rant at JB HIFI as I have no problem with the laptops I am considering and will probably end up buying one from JB HIFI in the near future. It will be an outright purchase and not a rental.
end up buying one from JB HIFI
I'd suggest that you post your requirements, specifically your needs and wants (the two are not the same), and ask for suggestions.
You'd be surprised at how much money you can save over JB.
This is not a rant at JB HIFI
Why not? You should be. You just showed evidence that the salesman lied. The moral of this story is, don't believe anything an appliance store salesman says. Verify any information independently.
Their answer to your first question was a huge misrepresentation. I have seen a customer sue the store after they weren't told they might have to buy out the hardware at the end of contract. Big no-no.
Biggest life tip ever;
Don't rent anything other than a house, EVER. They will bend you over and stick it all the way in without lube. Then you look at it and go oooo I can get that big ass tv for only $30 per week, oh and a new fridge for $20... Actually I need a couch too, $40...
All at a 25% interest rate and more rapings to come if you want to keep it.
Just don't. Save up for it, or atleast put it on interest free
Renting new notebooks (or anything brand new for that matter except a house like said above) is almost always a waste of money. If you can’t afford new, then buy a refurbished or used notebook. There are plenty of near new refurbished notebooks out there, sometimes even from the manufacturers themselves; e.g: DELL outlet (All DELL factory outlet computers come with a standard 1 year warranty extendable up to 3, so you are not giving up on anything)
Also, like others have suggested big retail stores like JB HiFi are not the best places to shop if you are after the best bang for your buck. Have a look at specialized computer shops and online retailers; in some cases buying direct from the manufacturer’s website can be cheaper than buying from a place like JBH.
Why not? You should be. You just showed evidence that the salesman lied.
Yes, the salesman lied, and his reasons for doing so are unknown. Maybe he was trying to lure me into a quick purchase.
One unethical salesman does not necessarily represent the store or other salesmen ethics, but it can be an indication if another salesperson also feeds me incorrect information.
Verify any information independently.
I did verify the information as I had my doubts what the salesman was telling me.
I have bought many things from various store and have learnt to be wary of anything a salesman says that can not be verified in writing. When planning a purchase I like to make the first approach as a person who is not sure or who is not very knowledgeable in the equipment they wish to purchase. How the salesman treats me and the information they provide to me can make a big difference to my decision to purchase.
I am considering a number of stores and when I narrow down the specs of the laptop I will then see which store can give me the best deal.
I will not purchase a laptop from a store that can not show me it running before purchase.
Yes, the salesman lied, and his reasons for doing so are unknown. Maybe he was trying to lure me into a quick purchase.
The whole retail appliance rental business is highly sleazy.
Stay far away from it.
Only rent things in the short term, a weekend or a week or two. In the longer term, it is always significantly better value and less trouble buying outright.
Even using the credit card and paying interest is better value then any sort of a long term rental agreement (but don't do that either if you can help it)