In a study, the consumer association UFC-Que Choisir denounces the “ruinous” practice of long-term rental for household appliances.
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In LDD, a television can cost 180 € more than cash. | ÉRIC GAILLARD, REUTERS
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Use a refrigerator, a microwave, a television without owning it by not pouring than
a few euros a month can be tempting. This mode of consumption is called long-term rental (LLD). Known in the automotive industry for a few years, the LLD is also offered by sellers of household goods.
In a study, the UFC-Que Choisir estimates that this funding explodes
since 2008 (+ 257%). This market is estimated at 15 billion euros, 30% of which just for household appliances. CDiscount pointed out alongside Fnac-Darty and Boulanger Location, speaks of a trend marginal
with 340 products out of 60 million
eligible for this offer.
“Worse than the excesses of revolving credit”
The consumers’ association warns of the boom in long-term rental whose effects are even worse than the excesses of revolving credit in the 2000s
. Since then, revolving credits have been framed by two laws which have further protected consumers. This is what UFC-Que Choisir asks the public authorities to implement a legal framework as soon as possible
.
Since then, CDiscount has offered this mode of consumption. The study gives the example of a television sold for € 349.99. In the case of an LLD subscription, the customer pays € 43.89 first and then € 10.38. And this over forty-seven months. By taking out the calculator, after four years, the TV will have cost € 531.75, more than € 180 more than in cash. This type of purchase gives the illusion of easy accessibility to everyday consumer goods.
A lure for the consumer
According to Pascale Hebel, director of the consumer department at Credoc, long-term rental is a decoy for the consumer. It’s a form of credit. “
The most modest households or those excluded from the credit market are the first to be seduced. When you have economic difficulties, you have a short-term logic. LLD is attractive because it allows immediate use of the product without it appearing to be expensive… in the short term
, confirms Pascale Hebel.
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