ARTICLE AD BOX
Nearly 20% of U.S. consumers who acquired durable goods implicit the past 12 months did truthful utilizing lease-to-own programs, PYMNTS probe found. While those 34 cardinal consumers tended to person less recognition cards and little recognition scores, they besides had entree to idiosyncratic loans, location equity lines of recognition and 2nd mortgages.
The results are portion of PYMNTS’ new Finding Retail’s Invisibles report done successful collaboration with Katapult, which explains the outgo option, identifies the consumers who usage it and outlines the benefits to merchants that connection it.
Among the findings, 73% of consumers said that lease-to-own allows them to get items they request close away, specified arsenic tires.
“What galore consumers don’t recognize is that you don’t request to wage the full sum up front,” retailer Tires-Easy said in a blog post, noting that caller tires for a car are costly but necessary. For those who can’t spend caller tires, the institution offers alternatives, including a lease-to-own option.
Empowered to Purchase
In addition, 75% of consumers said lease-to-own options were the lone mode they could spend to implicit the transaction. Consumers with fiscal challenges prime lease-to-own due to the fact that they often similar to usage 100% financing alternatively than currency arsenic a mode to wage for durable goods.
“Lease-to-own fittingness instrumentality is simply a large mode to enactment retired present and wage later,” seller Expert Fitness Supply said in a blog post on its website. “Whether you person nary recognition past oregon atrocious credit, you tin present beryllium empowered to acquisition the gym instrumentality you request for your home.”
Seventy-nine percent of consumers said that flexibility is the apical crushed they take lease-to-own, arsenic it allows consumers to marque payments connected a merchandise implicit clip portion utilizing it — on with aboriginal acquisition options oregon the prime to instrumentality it without further work if it is nary longer needed oregon wanted.
Bridge millennials and younger consumers are particularly apt to embrace lease-to-own to get durable goods due to the fact that of its flexible structure.
Opening up the Option
Merchants and retailers tin pat into these user groups with the assistance of disruptive exertion platforms that are opening up this enactment online and in-store.
And the marketplace is large. By definition, durable goods are items that are built to past respective years, and cardinal categories that were acquired by a precocious percent of consumers implicit the past 12 months see location appliances (40.6%), location furnishings (37.5%) and user electronics (34.7%).
Lease-to-own programs alteration retailers to pat into a greater stock of this marketplace by allowing consumers to take to lease items they request and past instrumentality them, acquisition the items astatine immoderate constituent successful the lease period, oregon ain the items astatine the extremity of their maximum lease term.
In summation to drafting successful those consumers successful the archetypal place, determination is different benefit to offering the lease-to-own option: PYMNTS probe recovered that 66% of consumers who antecedently utilized lease-to-own options astatine checkout program to usage the enactment to store again astatine immoderate point.