Renting to own appliances, HDTVs, furniture, computers and other household furnishings is a concept that is difficult to understand or is just misunderstood from the get-go say focus group respondents throughout the country. The rent to own national trade association traveled throughout the country to find what the average American knows about the renting to own. And the results turned out interesting and surprising.
A majority of respondents thought the rent to own transaction is financial obligation like a credit sale but more expensive. That frustrates those who work in the rent to own industry as that is, they say, the cornerstone of the industry and transaction. That the rent to own transaction is not a credit sale but a rental with the option to own.
When you rent to own, you can return the product at any time for any reason with penalty. There is no legal debt. And you’re never obligated to make the next payment.
Another interesting discovery from the research is how rent to own is perceived when compared to credit, cash and used. After witnessing how the respondent’s light bulbs went off, marketing researchers called the comparison chart a “game changer”.
Those not familiar were not aware of the many aspects of the rent to own transaction such as trying before buying. Upgrade to the latest technology. Pick your payments. Return without penalty. New products. Won’t hurt credit. No debt, free delivery and repairs.
Another aspect was rent to own stores offering “90 days same as cash” and, even more so, “180 days same as cash”. The fact that the customer has the benefits of the no obligation transaction but if paid off in 90 days or 180 days same as cash then you can own the product at comparative retail value.
Rent to own store owners and employees look at this recent study to help in their efforts to better explain this widely unknown and misunderstood transaction. Because as the research does show, once consumers understand fully the rent to own transaction they are much more likely to consider it as an option.
Just another Shop RTO finance tip.