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Who Buys Source

Profiling rental-purchase customers, by age bracket: Under 25, 5%; 25-34, 20%; 35-44, 33%; 45-54, 28%; 55-64, 11%; 65+, 3%.

Association of Progressive Rental Organizations, 2011

Rental-purchase customers, according to household income: Under $15,000, 13%; $15,000-$23,999, 28%; $24,000-$35,999, 31%; $36,000-$49,999, 24%; $50,000-$74,999, 3%; $75,000+, 1%.

Association of Progressive Rental Organizations, 2011

Rental-purchase customers, according to level of education: Less than high school graduate, 3%; high school graduate, 58%; some college, 23%; college graduate, 15%; graduate school, 1%.

Association of Progressive Rental Organizations, 2011

Rent-to-own customers, by racial background: White, 84%; Black, 15%; Other, 1%.

Association of Progressive Rental Organizations, 2011

According to research by the Association of Progressive Rental Organizations, 68% of rental-purchase customers are women, while men make up 32% of the industry's customer base.

 

APRO, 2011

Rental purchase customers typically include such groups as students, temporarily-assigned business executives, military personnel and families in transit. Most rental-purchase customers have immediate needs, but either do not want or cannot accept long-term financial obligations. And some customers have no access to credit arrangements.

Association of Progressive Rental Organizations, 2010

When They Buy Source

According to the American Rental Association, April is National Rental Month.

American Rental Association, 2011

Monthly sales of furniture stores, appliance stores and consumer electronics stores give an indication of the level of demand for items rented most frequently by rental-purchase stores (3-year average, 2007-2009): January, 8.0%; February, 7.9%; March, 8.0%; April, 7.5%; May, 8.1%; June, 8.0%; July, 8.1%; August, 8.4%; September, 7.7%; October, 7.8%; November, 9.2%; December, 11.3%.

U.S. Department of Commerce, 2010

One of the busiest periods for the rent-to-own industry is Super Bowl weekend, when football fans rent big-screen televisions and extra furniture for game-watching parties.

APRO, 2010

Why They Buy Source

Many customers use their rent-to-own payment history to help establish credit for home ownership and help acquire a credit-worthy status.

Association of Progressive Rental Organizations, 2011

How They Buy Source

Rentals are normally for either one week, two weeks or one month at a time. If the rental agreement contract is renewed a prescribed number of times -- usually a total period of 12-24 months -- the customer obtains ownership of the item. Due to growth within the industry of both public companies and independent dealers, many companies are also offering 3-6 month rental agreement ownership options that are lowering rent-to-own prices.

Association of Progressive Rental Organizations, 2011

At the end of each rental agreement, the customer can either terminate the agreement without any cost or obligation, renew the contract by making another advance rental payment, change the rental agreement terms with a different payment or execute his or her early purchase option to obtain ownership of the product.

Association of Progressive Rental Organizations, 2011

The overwhelming majority of rental-purchase customers do not pursue the option of owning their rented merchandise. Approximately 75% return the rented item within the first four months, while 17% exercise early-purchase options and 8% rent-to-own for the full term.

 

Association of Progressive Rental Organizations, 2011

Previously rented items are refurbished and re-rented at reduced rates.

Association of Progressive Rental Organizations, 2011

Under an equipment rental agreement, customers pay to use an item for usually a short period of time -- by the hour, half-day, day, week or sometimes longer. The contract begins when the consumer leaves the store, and ends when they return it. The traditional equipment rental agreement differs from rent-to-own contracts, which can be designed to transfer ownership eventually.

American Rental Association, 2010

What They Buy Source

Rent-to-own stores' product breakdown, according to rental revenue: Furniture, 39%; electronics, 21%; appliances, 20%; computers, 9%; jewelry, 2%; other, 9%. Two more product categories -- tires/wheels and musical instruments -- have recently enjoyed great success within the rent-to-own industry.

Association of Progressive Rental Organizations, 2011

The equipment rental industry is divided into three segments: Construction and industrial equipment (such as backhoes, cranes, mini-excavators, scaffolding and air compressors); general tool/home improvement, also known as do-it-yourself (such as floor care equipment, rototillers, thatchers, wallpaper steamers and pressure washers); and party/special event/wedding and reception rentals (such as tents, party props, table linens, gazebos and silverware).

American Rental Association, 2011

Construction and Industrial equipment rental accounted for an estimated 66.2% of industry revenues in 2009, with the General Tool segment accounting for 26.4% of the total. The Party and Event segment was responsible for the remaining 7.4%.

American Rental Association, 2010

Where They Buy Source

Rent-A-Center is the largest operator of rent-to-own stores in the U.S. The company operates approximately 3,000 locations in North America and Puerto Rico, under the Rent-A-Center, Get It Now and Home Choice banners. It also franchises some 210 outlets through its ColorTyme subsidiary. Rent-A-Center stores offer name-brand home electronics, furniture, accessories, appliances and computers. Revenues for Rent-A-Center in 2010 amounted to $2.732 billion, down 0.7% from 2009.
 

Hoover's, 2011

Aaron's operates more than 1,675 stores in the U.S., Puerto Rico and Canada, where they feature home/office furniture, electronics, computers and appliances. The company's 2010 revenues totaled $1.877 billion, up 7.1% from 2009.

Hoover's, 2011

Top 10 North American equipment rental companies, based on 2009 rental revenue (in millions), with number of locations in parentheses: 1. United Rentals, $1,830.0 (562); 2. RSC Equipment Rental, $1,073.0 (457); 3. Sunbelt Rentals, $1,029.9 (395); 4. Hertz Equipment Rental Corp., $891.0 (255); 5. Home Depot Rentals, $520.0 (1,200); 6. Maxim Crane Rental Corp., $275.5 (34); 7. Ahern Rentals, $250.1 (71); 8. NES Rentals, $240.3 (77); 9. Aggreko North America, $234.7 (58); 10. Finning, $224.4 (32).

Rental Equipment Register, 2010

Business Trends Source

According to research conducted by the Association of Progressive Rental Organizations, the rent-to-own business is a $7.0 billion industry, and includes approximately 8,600 stores. At any given time in the year, RTO serves around 4.1 million customers (households).

 

Association of Progressive Rental Organizations, 2011

The average rent-to-own store generates annual revenues of $736.000, with a yearly customer base of 360 accounts.

Association of Progressive Rental Organizations, 2011

Operating costs for rent-to-own businesses are higher than traditional retail establishments because of the ultimate return of merchandise, merchandise repair and replacement expenses, the need to continually market the industry's services to a rotating customer base, and other unique factors.

Association of Progressive Rental Organizations, 2011

Revenue generated by the U.S. equipment rental industry (including the construction/industrial, general tool and party/event segments) totaled an estimated $30.3 billion in 2009, down from $35.3 billion in 2008.

Rental Management, 2010

According to a study by Rental Equipment Register, revenue generated by the top 100 equipment rental firms totaled $10.312 billion in 2009, a 25.3% decrease over the previous year's figure of $13.803 billion. The top 10 equipment rental companies accounted for $6.568 billion of the 2009 total, compared to $8.907 billion in 2008.

Rental Equipment Register, 2010