The Rent To Own Industry
The rent to own industry was developed in the 1970′s due to the need for household items without having credit or the need to add debt to their current finances. Since then, the industry has grown to an over $7 billion dollar industry. One of the major reasons people like the rent to own option is price. There is a great need in America for household goods at affordable prices without any obligations – that is rent to own. Rent to own is completely different from a typical credit sale. A rent to own contract can be obtained without any credit checks, you can return the product at any time and there is no interest charges to the customer. A credit sale has interest, credit checks and the consumer generally is stuck with the merchandise.
The best part of rent to own is that there is not debt associated with the transaction. A customer can get a rent to own contract for a week, 2 weeks, or a month depending on the rental company. Some companies have a minimum term of 1 month to 6 months but in most cases there is no obligation to keep the merchandise and it can be returned without any obligations. The debt feature is really nice in rent to own…..there is none. Another very nice feature that rent to own customers take advantage of is the free delivery of the rental products and free replacement on most merchandise.
Here is some general knowledge about the RTO or rent to own industry. The majority of rent to own customers have a need for an electronic, appliance or furniture but do not have the means to go out a make the full purchase. Their need is still there and must be met. That is rent to own comes in handy. Some rent to own companies have expanded their business into other areas like wheels and tires and jewelry, but the majority is the big three: major appliances, electronics and furniture.
There are over 8000 rent to own stores in the US today. Those stores have over 6 million customers. Rent to own customers come from a wide variety of people such as the family that works and gets a weekly paycheck to others that are more well off and just need a short term rental. The majority of rent to own customers have little or no access to credit. The rent to own industry is 65% female and 35% male. 70% of the rent to own customers actually own their home they live in.