Consumers across the United States are facing a host of financial stressors. The rising cost of living, uncertainty surrounding the pandemic and potential increases in interest rates are but a few of the issues influencing their spending decisions. Many feel especially cautious about buying durable goods, typically defined as goods that do not wear out quickly and are used by consumers for more than three years, including sofas, beds or refrigerators.
Many consumers believe that they have just two viable options for purchasing durable goods: going without potential necessities or going into unsecured debt. There is another option for them to consider, however: lease-to-own purchasing. This method allows consumers to buy the goods they need using flexible, pay-over-time options.
The Lease-to-Own Secret: Giving Consumers Control Over Durable Goods Purchases, a PYMNTS and Katapult collaboration, examines how lease-to-own purchasing options can give consumers greater financial flexibility when buying durable goods. The report draws from a census-balanced survey of 2,688 U.S. consumers. It reveals how they currently pay for durable goods and how lease-to-own plans can positively impact their relationships with their favorite merchants and increase sales.
Key findings from the report include:
• In the past 12 months, 62% of U.S. consumers have purchased durable goods. The most frequently purchased durable goods are home furnishings, cited by 33% of consumers. Twenty-eight percent of respondents reported purchasing consumer electronics, 27% purchased home appliances, and 26% bought automotive parts.
• The most common reason consumers use financing options is to manage their finances better. Sixty-seven percent of lease-to-own users and 57% of buy now, pay later (BNPL) users could not purchase desired durable goods without access to these financing options.
• More than one-quarter of respondents would not purchase durable goods at a traditional retailer that lacked lease-to-own options. Sixteen percent said they would not make the purchase, and 10% would go to a lease-to-own store and attempt to use lease-to-own financing.
To learn more about durable goods purchasing and financing trends, download the report.