Rent-to-own is a payment plan in which you lease and potentially acquire new electronics from top brands.
The rent-to-own industry became popular in the 1960s for the leasing of household furniture and appliances. Many consumers didn’t qualify for financing because they lacked the credit required, so rent-to-own provided an option that consumers could apply for.
Since then, the lease-to-own industry has grown tremendously, with over 9,200 stores in the U.S. serving over 4.8 million customers annually. Globally, there are an estimated 9,900 rent-to-own stores, a figure that excludes online rent-to-own stores.
Rent-to-own is not the same as other payment options, such as in-store credit or layaway. With in-store credit, the loan is financed by the store, and it accrues interest on the amount owed, which in turn increases the amount you’ll pay for the product. Although the rent-to-own payment option does not accrue interest, there are comparable leasing fees included.
With layaway, you make cash installments toward obtaining an item. However, until the product is paid off, the store maintains possession of the product. Rent-to-own allows you to take the product home with you and begin using it while you make rental payments according to your rental agreement.
Benefits include:
- Leasing a new gaming PC from notable brands through rental payments without making a huge upfront payment to pay off your item.
- You may still be able to lease your new gaming PC desktop with less-than-perfect credit scores or past bankruptcies.