The report provides an in-depth study of the US rent-to-own industry with detailed analysis of impact of COVID-19, market size in terms of value, distribution channel and number of stores.
Moreover, the report also assesses the key opportunities in the market and outlines the factors that are and would be driving the growth of the industry. Growth of the overall US rent to own market has also been forecasted for the period 2021-2025, taking into consideration the previous growth patterns, the growth drivers and the current and future trends.
The US rent-to-own industry is highly fragmented but dominated by only two major players namely Rent-A-Center and Aaron’s Inc. The report also provides company profiling of goeasy Ltd. and FlexShopper Inc. which briefs about business overview, and financial summary of these major companies.
- Aaron’s Inc.
- goeasy Ltd.
- FlexShopper Inc.
Rent-to own (RTO) refers to an agreement in which the buyer has the option to become the owner of the property/goods, after a certain period of fixed time and payment. Previously, rent-to-own agreements explicitly dealt in the purchasing of homes/property only, but nowadays rent-to-own industry comprises of dealers that rent furniture, appliances, home electronics, and jewelry as well to the consumers.
The rent to own agreement has prospective financial advantages and offer benefits to both owner and renter. In such agreements, the buyers have immediate access to household goods for a relatively low week or monthly payment, typically without any down payment or credit check. As the buyer has to make a small payment weekly/monthly, so it does not create much financial burden on buyer.
A rent-to-own agreement is made up of two agreements: a standard lease agreement and an option to purchase. A consumer who respects the terms of the contract and pays all rents before acquiring the good leased, generally pays, in total, twice even three times the actual value of the good.
The US rent-to-own market has shown rising trends over the past few years and gained more prominence in 2020 and the coming years due to the outbreak of COVID-19. Furthermore, the market is projected to progress further during the forecasted period (2021-2025).
Growth in the market in the last decade was supported by factors such as heightened urbanization, improved GDP, significant population of international migrants and increased usage of virtual rent to own platforms.
Boost in internet penetration, spike in number of smartphone users and increased importance of e-commerce distribution channel are some of the latest trends existing in the market. These trends are expected to boost the market during the forecasted period.
The pandemic has made social distancing and stay at home, the new normal throughout the country. In these tough times, more and more people are expected to make RTO transactions online for essential commodities like computers and other appliances.
2.1.1 Rent-To-Own: An Overview
2.1.2 Rent-To-Own: Advantages and Disadvantages
2.2 Consumer Protection
2.2.1 Consumer Protection Provision
- Federal Laws
- States Rent –to-Own Legislation
- States without RTO Legislation
2.3.1 Types of Law
- Pricing Restriction
- Required Disclosures
2.4.1 Components of Rent-to-Own Agreement
- Rental Agreement
- Option to Purchase
3. The US Market Analysis
3.1 North America Rent to Own Market: An Analysis
3.1.1 North America Rent to Own Market by Countries (The US and Rest of North America)
3.2 The US Rent to Own Market Analysis
3.2.1 The US Rent to Own Market by Value
3.2.2 The US Rent to Own Market Value by Distribution Channel (Ecommerce and Bricks and Mortar)
3.2.3 The US Rent to Own Market by Number of Stores
3.2.4 The US E-Commerce Rent to Own Market by Value
4. Impact of COVID-19
4.1 Economic Impact of COVID-19
4.1.1 The Economic Effects of COVID-19
4.2 Response of Industry Players to COVID-19
5. Market Dynamics
5.1 Growth Drivers
5.1.1 Spike in Urbanization
5.1.2 Significant Population of International Migrants
5.1.3 Surging GDP Growth
5.1.4 Rising Disposable Income
5.1.5 Growing Millennial Population
5.1.6 Rising Virtual Rent-to-Own Market
5.2.1 Dependency on Vendors, Suppliers and Products
5.2.2 Lack of Customer Security
5.2.3 Low Profit Margin
5.3 Market Trends
5.3.1 Hike in Internet Penetration
5.3.2 Rollout of Smartphone as New Category
5.3.3 Rapid Pace in Technological Advancements
6. Competitive Landscape
6.1 The US Rent to Own Market Players: A Financial Comparison
6.2 The US Rent to Own Market Players Comparison
6.3 The US Rent to Own Market Players by Number of Stores
7. Company Profiles
7.1 Rent-A-Center Inc.
7.1.1 Business Overview
7.1.2 Financial Overview
7.1.3 Business Strategy
7.2 Aaron’s Inc.
7.2.1 Business Overview
7.2.2 Financial Overview
7.2.3 Business Strategy
7.3 FlexShopper Inc.
7.3.1 Business Overview
7.3.2 Financial Overview
7.3.3 Business Strategy
7.4 goeasy Ltd.
7.4.1 Business Overview
7.4.2 Financial Overview
7.4.3 Business Strategy
List of Figures
Table 1: Rent-to-Own Advantages & Disadvantages
Figure 1: Consumer Protection Provision
Figure 2: Components of Rent-to-Own Agreement
Figure 3: North America Rent to Own Market by Countries; 2020 (Percentage,%)
Figure 4: The US Rent to Own Market by Value; 2016-2020 (US$ Billion)
Figure 5: The US Rent to Own Market by Value; 2021-2025 (US$ Billion)
Figure 6: The US Rent to Own Market by Number of Stores; 2016-2020 (Thousand)
Figure 7: The US Rent to Own Market Value by Distribution Channel; 2020 (Percentage,%)
Figure 8: The US E-Commerce Rent to Own Market by Value; 2019-2025 (US$ Billion)
Figure 9: The US Number of Unemployed Persons & Unemployment Rate; April 2019-April 2020 (Million & Percentage, %)
Figure 10: The US Urban Population; 2016-2020 (Percentage, %)
Figure 11: Percentage of International Migrants in the US; 2019 (Percentage, %)
Figure 12: The US GDP by Value; 2015-2019 (US$ Trillion)
Figure 13: The US Disposable Personal Income; 2016-2020 (US$ Trillion)
Figure 14: The US Millennial Population; 2016-2036 (Million)
Figure 15: The US Internet Penetration Rate; 2017-2023 (Percentage, %)
Figure 16: The US Smartphone User Penetration; 2016-2021 (Percentage, %)
Table 2: The US Rent to Own Market Players: A Financial Comparison; 2020
Table 3: The US Rent to Own Market Players Comparison; 2019
Table 4: The US Rent to Own Market Players by Number of Stores; 2020
Figure 17: Rent-A-Center Inc. Revenue; 2016-2020 (US$ Billion)
Figure 18: Rent-A-Center Inc. Revenue by Segments; 2020 (Percentage, %)
Figure 19: Rent-A-Center Inc. Revenue by Country; 2020 (Percentage, %)
Figure 20: Aaron’s Inc. Revenues; 2016-2020 (US$ Billion)
Figure 21: Aaron’s Inc. Revenues by Segments; 2020 (Percentage, %)
Figure 22: FlexShopper. Revenues; 2016-2020 (US$ Million)
Figure 23: goeasy Ltd. Revenue; 2016-2020 (US$ Million)
Figure 24: goeasy Ltd. Revenue by Segments; 2020 (Percentage, %)
- Aaron’s Inc.
- FlexShopper Inc.
- Rent-A-Center Inc.
- goeasy Ltd.
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