What Is Rent To Own

The rent to own industry 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, and desire 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 that there is no interest charged to consumers, no credit is needed, and customers can return the merchandise at any time. This no-obligation, no-debt feature is the cornerstone of rent to own. It's easy, it's safe and it's hassle-free. Free replacement, repair and delivery are included.

Rent To Own Transaction

Rent to own agreements are normally established for payment periods of weekly, bi-weekly, semi-monthly, or monthly.

At the end of the week or month, the customer can either terminate the agreement without any cost or obligation, or renew the agreement by making another advance rental payment.

If the agreement is renewed a prescribed number of times (PriceWise offers periods from 6 to 30 months) and the customer meets the terms of the rental-purchase agreement, the store conveys ownership of the item to the customer.