RENT-TO-OWNWhat is rent to own?* Rents out furniture, electronics, appliances, computers, wheels, jewelry, even musical instruments* $7 billion a year industry* Average store has annual revenue of $736,000* More than 8,600 stores in 50 states and Canada.* More than 4.1 million households served per year* Originated in 1970sSource: Association of Progressive Rental OrganizationsIndustry growth2007 – 3.2 million customers2008 – 3.6 million customers2009 – 4.1 million customersSource: Association of Progressive Rental OrganizationsIndustry revenue2007 – $6.3 million2008 – $6.6 million2009 – $7 millionSource: Association of Progressive Rental Organizations
The saying, “I will gladly pay you Tuesday for a hamburger today,” started off as a catchphrase by Wimpy, the burger-starved cartoon character whom one could often find in the company of Popeye the Sailor Man.
Some businesses have turned this mindset into a profitable enterprise and are counting on the Wimpys of the world not to pay up front as they expand into the Chattanooga market on a recession-fueled bounce.
Thanks to modern financing, if Wimpy were still around today he could easily find a new TV or an entire bedroom set without paying so much as a dime upfront, though he could pay much more in the long run.
Even if Wimpy had terrible credit, stores like Bestway Rent-To-Own or Buddy’s Home Furnishings allow customers to simply rent a 50-inch LG plasma TV for under $100 per month, with the option to eventually buy it for roughly double the manufacturer’s suggested retail price.