What Is Rent-To-Own?
More Service, More Options, No Debt...
The Rental-Purchase industry is composed of businesses that rent furniture, appliances, computers, jewelry and other home products with an option of ownership. Also known as Rent-To-Own, this is a $5.7 Billion-a-year industry serving approximately 2.8 Million customers a year. The popularity of Rent-To-Own is due to its numerous advantages over traditional retail sales of the same products. While some of the listed benefits of RTO may vary from company to company, you will likely find them at an RTO dealer near you.
Merchandise is usually serviced and repaired at no charge while you are renting.
Should your product need repair or replacement, "loaner' merchandise is provided while you are renting.
Delivery, set-up and product education are often included in the rental purchase. Dealers show you how the DVD operates, explain the cycle functions of your new washer, and inform you of the benefits of the latest electronic equipment.
You are the customer long after you walk out the door. You make the decision to keep or return your product each week/month based on your satisfaction with its performance and the service you receive. RTO companies earn your business each time you make a payment.
High quality product is essential to your satisfaction and the rto dealer's success. Because they service their products for the duration of the rental agreement, it becomes even more important to provide quality merchandise.
You don't need a reason to return merchandise. Your rental agreement is on a weekly or monthly basis with payments made in advance. If you decide you don't need or want the merchandise, just call and make arrangements for return.
Most rental dealers have flexible pricing available for most items to accommodate your budget. This means you choose between lower payments with longer terms or higher payments for shorter terms.
Your rental payment can be used to establish future credit references/lines.
Your total merchandise cost is computed for you before you sign any rental agreement. In addition, retail pricing is available for comparison. Currently, 45 States regulate the rental purchase transaction with laws designed to protect the consumer.
Additional charges may apply for reinstatement and in-home payment pick-up. These charges are clearly outlined in the rental-purchase agreement and explained at the time you begin your rental.
Optional insurance and rental benefits programs are often offered but are not required.
RTO allows you to return your merchandise at any time with no obligation to continue payments. This is especially beneficial when unexpected loss of income or unplanned expenses arise such as household or auto repairs.
There are no credit checks and no affect on your credit rating. This gives you the option of using your existing credit line for major purchases and investments.
* Rental-purchase costs include charges for services and options not offered in a traditional retail transaction. The many benefits listed above cause operating expenses to be higher for rental-purchase than for retail. The rental customer gets what they pay for: more service, more options, no debt and more convenience than retail can offer. In most cases, retail will be less expensive, however, it is not an accurate comparison due to the many differences between retail and rental-purchase.