Rent-to-own
 | It has been suggested that this article be merged into Hire purchase. (Discuss) Proposed since September 2006. |
Rent to own The $6.6-billion rent-to-own industry--or RTO--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. Rent-to-own customers come from all walks of life, desiring consumer durable goods in their homes without the long-term financial obligations associated with credit sales. What distinguishes rent-to-own 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 as free replacement, repair and delivery are included. A consumer may return a rental item at any time without penalty. Most companies have a lifetime reinstatement clause, allowing the consumer to re-rent a returned item (or similar item) and receive full credit for all previous rental payments made.
The rent-to-own industry is composed of dealers who rent furniture, electronics, major appliances, computers, jewelry and other products with an option to buy. There are approximately 8,300 stores in all 50 states. RTO serves 2.7 million customers (households) a year.
The majority of rent-to-own customers are working Americans earning a weekly paycheck. Customers include students, temporarily assigned business executives, military personnel and in-transit families. What all 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.
The primary trade portal for the Rent to Own industry is RTO Online
The Association of Progressive Rental Organizations is the official voice of the rent-to-own industry. Founded in 1980, APRO is the national, nonprofit trade association advocating and representing the rent-to-own industry before the U.S. Congress, state legislatures, courts, media and the public. For more information, visit http://www.rtohq.org. Other industry links include: RTO Online at http://www.rtoonline.com; The Texas Association of Rental Agencies at http://www.taraontheweb.com/; The Arkansas Rental Dealers Association at http://www.arkansasrentaldealers.org/; Cal-APRO at http://www.arkansasrentaldealers.org/; Florida RDA at http://www.frda-rto.com/; Illinois RDA at http://www.illinoisrentaldealers.org/; Missouri RDA at http://www.missourirentaldealers.org/; Ohio RDA at http://www.ordaontheweb.com/; RPDA of Indiana at http://www.rpda.org/ and Tennessee RDA at http://www.trda-rto.org/.
The top 3 RTO companies in North America are;
- Rent-A-Center (Recently acquired Rent Way)
- Aaron's Sales and Lease Ownership
- easyhome (Canada)