top view of game console controller, keyboard, cell phone, and tablet

Rent-to-Own Electronics

The increasingly popular option of getting rent-to-own electronics has given more options to consumers than ever before. This option can help make furnishing your home the products you love more realistic, even with less-than-stellar credit history.  Learn about these important aspects of getting rent-to-own electronic financing below:

  • What is Renting-to-Own Electronics?
  • How does Rent-to-Own Electronic Financing Work?
  • What Kinds of Electronics Can You Rent-to-Own?
  • Who Offers Rent-to-Own Electronics?
  • FAQs About Rent-to-Own Electronics

Rent-To-Own Electronics – What Is It?

Rent-to-own electronics is a financial arrangement that allows you to acquire electronics by paying for the electronics in periodic installments. The payment terms are clearly outlined and cater to customers with bad credit who want to buy premium brands and high-quality electronics.

Rent-to-own works differently than other payment arrangements. Each payment installment goes towards settling the total cost of the electronic lease. Once you complete payment for your selected electronic at the end of the lease agreement, you have full ownership rights to the product.

woman working on laptop in office building

Using a rent-to-own plan for electronics has unique advantages, particularly for customers with poor credit history. These benefits include:

  • Access to popular stores with wide product selections.
  • Ability to get electronics faster than a full, up-front purchase.
  • Access a higher-quality and newer electronics through payments.

As of 2016 brick and mortar, RTOs in the US had a customer base in excess of 4 million distributed across 6,700 stores. At the same time, there were about 30,000 online RTO stores across the country.

How Do Rent-To-Own Electronics Work?

Rent-to-own electronic arrangements have a simplistic business model that involves a periodic payments over time. In some cases, the contract can be terminated according to the agreement at any time.

For clarity, the RTO store will specify the outright cash price for the item if the customer was to buy the item on a single installment cash payment. The RTO will also disclose the total price the customer will pay to own the item on RTO terms which is usually higher.

For example, a customer buying a television can either pay $700 for the television outright, or they can pay $18 per week for 78 weeks. The total cost of renting-to-own the electronics in this example is $1,404.

If you would like to own the electronic you acquire through a rent-to-own arrangement, you generally have three options. With AFF, here’s an example of those options look like:

  • Early Buyout Option (EBO) – save on rental fees by paying off your RTO agreement in full early, often within 90 or 101 days, and own the electronics earlier.
  • Early Purchase Option (EPO) – pay off your RTO agreement after the EBO but before the end of your agreement term.
  • Full payment option – pay for the electronics for the entire term of your RTO agreement.

Rent-to-own terms are also different from other services like in-store credit because it is not a loan and doesn’t incur interest. Please note that although the RTO model does not include interest, there are comparable leasing fees included. Also, services like in-store credit require the customer to have stellar credit scores to qualify for the service, where as a no credit needed solution considers more than credit history alone.

Perks of Rent-to-Own

There are many perks of rent-to-own electronics, such as the following.

  • Access to better products for a small monthly payment (way less than buying/loan): You have complete access to your favorite electronics like TVs, desktops and monitors, home theaters, laptops and tablets, gaming equipment, and more. The cost of your selected electronic is divided into smaller installments that you can pay over a long period of time, making the purchase more affordable.
  • It gives you a chance to test various products or get higher-quality products sooner: RTO agreements can give you access to test the products you want to purchase, and you don’t have to wait until you save up enough to buy the latest product on the market. RTOs don’t always require you to put down a substantial deposit on the electronics you choose. The periodic installments allow you to walk in and walk out with the latest in electronic technology without paying a hefty sum for it.
  • Access to Store Networks: AFF offers access to thousands of partner stores with rent-to-own electronics arrangements. To apply, simply find a store near you and click “Apply” to get started. Apply and see if you’re approved for a purchase solution option today.*

*Payment solutions vary based on merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or cash purchase solution you intend to apply for.

Popularity of Rent-To-Own in the Electronics Industry

As per 2019 income records, the average income was $51,916.27, while the median wage in the United States was $34,248.45. Over 34 million people were living below the poverty line. Many people in these income brackets will have trouble accessing credit which is why subprime lending has taken root and grown exponentially.

Subprime loans provide new options for borrowers who can’t qualify for conventional loans.

man shopping for laptops in computer store

Usually, these borrowers have a bad credit history, financial challenges, or have low-quality collateral. Subprime lending is convenient, it has higher than average interests because of the risk factor.

What Kind of Electronics Can You Rent-To-Own?

The electronics you can purchase through the rent-to-own program depend on where you apply for an rent-to-own option. Whether you’re looking to upgrade to UHD televisions, video game consoles, or purchase a range of electronics for your new home, RTO can provide access to a variety stores and products depending on where you apply. There are a number of rent-to-own electronics available in the marketplace today.

Popular Rent-to-Own Electronic Items

Here is a list of some of the sought-after electronics:

  • TVs
  • Laptops and Computers
  • Ovens
  • Washers
  • Sound bars and Audio systems

TVs

TVs are a big deal in the modern world. Whether it’s for sporting entertainment or to catch up with your favorite daytime soap opera, everyone is after the TV that has the most immersive and fantastic experience. This is why TVs are becoming the center of every home’s entertainment system. With the advanced display technology and introduction of Smart TVs, they can now do more than fulfill your viewing experience. Rent-to-own TVs at these larger retailers include a wide selection of name-brand products, with clear payment options.

There are a few primary types of TVs on the market today:

  • LEDs – These offer an average viewing experience and are more pocket-friendly in terms of cost. They are also the most common on the market.
  • OLEDs – A more recent, more advanced technology that offers a better viewing experience but comes with a premium tag.
  • QLEDs – Quantum-dot light-emitting diode televisions offer brighter, more colorful displays than traditional LEDs.
  • UHDs – Ultra high definition displays are a step up from HD TVs, also referred to as 4K displays.

Notable TV Brands

  1. LG
  2. Samsung
  3. Sony
  4. Vizio
  5. TCL
  6. Hisense
  7. Panasonic
  8. Philips
  9. Toshiba
  10. RCA
blurred image of tv store sale display

Laptops and Computers

In a seemingly dependent world on the internet, laptops, and computers are becoming a central part of everyday life. Whether for work, entertainment, or communications, laptops and other computing devices like tablets are becoming a basic need in most households.

There are several types of laptops with varying functionalities:

  • Notebooks – This is the most common type of laptop and the most affordable. Notebooks are not the most portable but can run basic tasks.
  • Ultraportable – Best in class, slim design, costly, with amazing aesthetics. These are perfect for business people who want a laptop they can take everywhere they go.
  • 2-in-1 – These work as laptops and also as tablets. They are perfect for portability and have better performance than a tablet.

Notable Laptop Brands

  1. Apple
  2. HP
  3. Lenovo
  4. Dell
  5. Acer
  6. Asus
  7. MSI
  8. Microsoft Surface
  9. Razer
  10. Samsung
laptop on office desk next to phone and tablet

Ovens

Ovens are a critical part of a functional kitchen. More so if you love preparing home-cooked meals for your family. Baking is one of the healthiest methods of cooking and is rapidly growing in popularity.

There are three main types of ovens you can choose from:

  • Conventional ovens – These are large and often come with cooking plates. The ovens can be electric or gas-powered, depending on what you purchase.
  • Convectional ovens – The new kid on the block, known for its even distribution of heat and favorable cooking results.
  • OTG ovens – These combine several functions into one; oven, toaster, and grill.

Notable Oven Brands

  1. GE
  2. Frigidaire
  3. Samsung
  4. Electrolux
  5. Verona
  6. Bertazzoni
  7. La Germania
  8. Beko
  9. Viking
  10. LG

 

own stove range washer large

Rent-To-Own Electronics Options for 2022

Over the years, most rent-to-own stores have broadened their services. Most of the stores support in-store and online applications for lease-to-own electronics. American First Finance (AFF) works with all of these RTO stores.

You can apply for a lease through our website. See our network of RTO stores for 2022, which includes the following:

  • American Freight
  • Conn’s Home Plus

store display of laptops

Rent-To-Own Electronics Options in Summary

With rent-to-own, people with bad credit can access payment solutions to get quality electronics for their homes. The plan does not require large cash payments upfront and it has friendly agreement terms.

You can change or terminate the plan without penalty, and it offers a lifetime carryover that lets you resume payments on repossessed appliances. If you need an electronic quickly, consider shopping at stores that offer same or next day delivery.

Apply for Rent-To-Own Electronics Online

American First Finance partners with many merchants across the country so you get matchless freedom when applying for RTO appliances. Shop at some of the largest companies in the retail space, including Conn’s, American Freight, Ashley HomeStore and more.

Apply for a rent-to-own option on our website for ease and convenience.

Use our merchant tool* to find a merchant near you and fill in the application online. The application process takes only a few minutes, and you can sign a contract as soon as you’re approved.

*Payment solutions vary based on merchant and will be indicated at the beginning of the application process. Be sure to confirm that the merchant you select offers the lease, loan, or cash purchase solution you intend to apply for.

Rent-To-Own Electronics FAQs

Below are some of the frequently asked questions related to RTO electronics to shed some light.

 

Q: What Does Rent-To-Own Mean?

A: Rent-to-own is a flexible payment method that allows people with bad credit scores to access quality products without having to purchase upfront and in full. This can be an option that helps people with a challenged credit history still access products they need or want.

 

Q: What Credit Score Qualifies for Rent-To-Own?

A: Credit score is not the only consideration during RTO application, making the service potentially accessible to some shoppers with bad credit. American First Finance will check your credit score, but it doesn’t automatically disqualify you.

 

Q: Where’s the Best Place to Rent-To-Own Electronics?

A: Where you can use your payment solution to rent-to-own electronics will depend on the company you choose to sign a contract with.

 

Q: How Can I Apply for Rent-To-Own Electronics?

A: You can apply for a rent-to-own electronics lease right here on our website. Although not everyone will be approved, having bad credit doesn’t automatically mean you’ll be denied. Credit checks may be done, but a low credit score does not necessarily disqualify you. First, select your preferred store near you, and you can apply directly in minutes.

 

Q: Where Can I Shop for Rent-To-Own Electronics?

A: American First Finance has hundreds of locations across the US for our customers to choose from. Use our Merchant Search tool to find the store near you to apply online and get a decision in minutes.