Why Lease-to-Own is a Sensible Option

When cash- and credit-constrained consumers apply for credit, they often get turned down. Without the ability to pay over time, consumers are forced to wait months or even years to make important purchases for their home and family – or worse, do without entirely.

Lease-to-own provides an alternative with unique benefits tailored to the needs of those who are underserved by consumer credit. Even with a low credit score, consumers can get approved for a flexible and affordable payment plan for essential household purchases like a computer, a phone, a mattress set, a washer dryer, or a refrigerator.

In the U.S., more and more consumers are dependent upon their smartphones for Internet access. Mobile phones are also a critical communication tool in the event of family emergencies. Lease-to-own provides greater access to an increasingly essential device enabling many non-prime customers to obtain access to a smartphone.

With this option, only the first payment is required to get started, and delivery is typically free. Importantly, for this consumer, the rent-to-own plan is simple to manage. Unlike revolving credit, it’s clear how much is required each month and how many payments remain until ownership is achieved. There are no compounding interest charges or minimum-payment traps that can drive up the total cost of ownership and lengthen the term from months to years.

Significantly, because leasing is not a loan, it gives consumers peace of mind knowing they have no long-term obligation. If it ever becomes too difficult to make a payment, they can choose to pause their lease. When they are ready, they can pick back up where they left off with the same or similar merchandise.

Lease-to-Own vs. Other Financing Options

Lease-to-Own Credit Layaway
Brand name, quality products checkmark checkmark checkmark
Return products anytime without penalty checkmark X mark X mark
No credit needed checkmark X mark checkmark
Flexible payment options checkmark X mark X mark
Free delivery and set-up checkmark X mark X mark
Service and repairs included checkmark X mark X mark
In the customer's home
right away
checkmark checkmark X mark