he fact that customers can return a rent-to-own product at any time for any reason distinguishes itself as a unique and valuable transaction filling many niches. Consumers have choices. They can buy used merchandise, which many customers do through their local rent-to-own store. Consumers can save the money and buy outright. And recently, with the new credit scoring system developed by FICO and CredCo, many consumers choose rent-to-own to begin a payment plan that demonstrates a payment history, thus elevating those consumers into—or a return to—credit-worthy status. Only rent-to-own offers the consumer the flexibility of a no-obligation, no-penalty return transaction that provides an ownership option and, now, the choice to show financial stability that can help the consumer to home ownership and beyond. The rent-to-own customer spans a diverse group of consumers with varying needs:

Rent-to-own fulfills immediate needs

• The big-screen TV for the big game: One of the busiest periods for the rent-to-own industry is during Super Bowl weekend when millions of Americans rent a big-screen television and extra furniture for their Super Bowl party. Rent-to-own’s delivery, set-up and pick-up service make it easy and affordable.
• The refrigerator is broken: When your appliances such as your refrigerator is being repaired and you do not want to live out of an ice chest for a week, rent-to-own can deliver, set-up and pick-up a refrigerator for your short-term use, making your inconvenience a small one.

Rent-to-own offers debt-free choices

• In today’s uncertain economy, when corporations are restructuring and laying off employees, the rent-to-own customer base also includes consumers who have good credit but appreciate the flexibility of rent-to-own and the right to choose options that will keep them out of debt should their financial situation change.

Rent-to-own fulfills short-term needs

• Seasonal work: Rent-to-own dealers help furnish the spring-training housing for many professional sports teams such as the Cincinnati Reds and Los Angeles Dodgers. These athletes have been relocated for a few months and need furnishings while they dust off their throwing arms or vie for a spot on the team. Rent-to-own offers the short-term renting solution to make their stay as pleasant and convenient as possible.
• The business executive: Many business executives find themselves with short-term needs on a monthly, semi-annual or annual assignment. The no-obligation rent-to-own option in the marketplace allows them to furnish their temporary housing with current, name-brand products making their short-term stay a comfortable one.
• The seasonal traveler: Many retired northerners flock to the Southern U.S. during the winter months. Rent-to-own makes it convenient for these travelers to update their furnishings without locking them into a long-term commitment.

Rent-to-own helps those wanting to avoid a big investment
in an uncertain purchase

• Musical instruments: One of the most popular products offered on a rent-to-own basis is musical instruments. Many parents worry that their children might lose interest in a musical instrument and are hesitant to put a purchase of that kind on the family credit card. This uncertainty plays a role in the consumer’s choice. Rent-to-own gives the consumer the flexibility to discontinue payments at any time should the child lose interest in the musical instrument. It also provides the added benefit of applying payments to ownership should the consumer decide she/he would like that option. No other transaction in the marketplace provides the flexibility in terms of ownership and payment options with a no-penalty return.
• Computer rentals: With the rapid change in technology, many consumers are renting computers and turn them in when a newer model is available.
• Flexibility in decor: Many decorators know that rent-to-own carries the quality, name-brand furniture they want, giving them the flexibility to change decor frequently. Rent-to-own gives the consumer many choices traditional retail does not.

Rent-to-own offers a long-term ownership option

• Bankruptcies and credit issues: With the recent tightening of bankruptcy laws, many consumers find their credit so damaged that options are limited. That’s not the case with rent-to-own. Because credit is not a factor when renting-to-own, many consumers turn to rent-to-own to continue to find the name-brand home furnishings they need and want. With rent-to-own prices being lowered throughout the country and the many payment options rent-to-own provides, rent-to-own is quickly becoming the option among few options for many in the marketplace.
• For those who cannot afford to buy outright: A recent financial survey reported that there are more than 50 million un-banked consumers in the economy that traditional retail avoids or rejects. Rent-to-own is there to offer these consumers the option of obtaining the home furnishings they need without the obligation found in a credit agreement. With uncertain employment or fixed incomes, rent-to-own provides consumers with an option for new, brand-name merchandise with payment options to make it affordable and competitive to retail. If a consumer chooses to pay weekly payments for two years, that consumer pays much more for the merchandise than if the consumer pays monthly payments for six months—which is a payment plan much more competitive with retail.