Why Consumers Say They Need Option-To-Buy Lease Options
Building a relationship of trust with retail customers is the easiest way to ensure a healthy and dedicated business relationship. Simply put, when companies offer a range of payment options, including option-to-buy lease programs, brand affinity grows.
This, according to a survey of more than 2,200 consumers for Finding Retail’s Invisibles: Levering Flexible Digital Payments To Reach Underserved Durable Goods Customers, a PYMNTS and Katapult collaboration, which shows that 75% of US consumers who use a rental option with option to buy said it was the only way for them to buy durable goods.
Read more: New study reveals strong demand for option-to-buy lease options amid BNPL boom
In total, an estimated 79 million U.S. consumers are unable to purchase durable, expensive items like furniture, appliances, or tires without benefiting from lines of credit or other flexible payment options. The “retail invisible” are typically consumers with financial problems who prefer to use 100% financing rather than cash to acquire durable goods.
Option-to-buy rental programs help people with significant financial pressures or credit score issues get the items they need right away. In fact, 43% of consumers who live paycheck to paycheck are “very” or “extremely” interested in option-to-buy leasing programs, while 37% of those with lower credit scores (679 FICO and less) were likely to do the same. .
In addition to higher approval rates than traditional loans or Buy It Now, Pay Later (BNPL) plans, the survey found that option-to-buy rental users most often cited ability of making essential but unexpected purchases, the low risk way of obtaining and using the products and the flexible payment schedule as major factors that have led to the use of option-to-buy programs.
The offer of lease options with an option to buy also affects consumers’ perceptions of merchants, as 22% of respondents said their willingness to shop was higher when merchants offered the plans, and 25% of consumers said their willingness to shop with these merchants has increased over the past few years. 12 months.
Additionally, respondents who have tried lease-to-buy programs in the past had a much better perception than the entire sample group, as 43% of those who used lease options saw their willingness to use them increased, and 65% said their willingness to use them had increased in the past 12 months.