Facts & FAQ's About (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 checks involved, 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 replacement, repair and delivery are included.
RTO Facts and FAQ's
- The RTO industry is composed of dealers who rent furniture, electronics, major appliances, computers, jewelry 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.
- Rent-to-own offers no-obligation rentals of durable merchandise, including furniture, major appliances (refrigerators, washers, dryers) and electronic goods; a typical agreement includes free delivery and free repairs or replacement of defective items -- satisfaction guaranteed.
- What all RTO customers have in common is that they have immediate needs for consumer household goods, but either don't want or can't accept long-term obligations; some customers have no access to credit arrangements.
- Operating costs for rent-to-own businesses are higher than traditional retail because of merchandise repair and replacement expenses, the need to continually market the industry's services to a rotating customer base, and other unique factors.
- 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 rates.