What is Rent-to-Own (RTO)?
The rent-to-own, or lease-purchase, industry is relatively new to the American economy. The unique "rent-to-own" transaction sprang up in the 1960s in response to a growing consumer need for acquiring the use of household products without incurring debt or jeopardizing the family's credit. The rental-purchase customer comes from all walks of life who desire consumer durable goods in their homes without the long-term financial obligations associated with credit sales.
What distinguishes rental-purchase from a retail credit sale is the term "rent." There is no interest charged to consumers, no credit is needed, and customers can return the merchandise at any time. This no-obligation, no-debt feature is the cornerstone of rental-purchase. It's easy, it's safe and it's hassle-free-free replacement, repair and delivery are included.
RTO FACTS:
- The RTO industry is composed of dealers who rent furniture, electronics, major appliances, computers and other products with an option to buy.
- Rent-to-own, or RTO, has been an identifiable U.S. industry for more than 30 years.
- There are approximately 8,000 stores in all 50 states.
- RTO serves 3 million customers (households) a year.
- Because renters pay as they go, and no credit is extended, credit reports on customers are not obtained.
- Previously rented items are refurbished and re-rented at reduced rental terms with all the great services of renting new product - free service, free delivery, free loaner, no long-term obligation - just a great way to save money on pre-rented merchandise!