Rent-to-own

Rent-to-own, also called rental purchase, is a business model in which a customer leases an item such as furniture, an appliance, a vehicle or a home, making periodic weekly or monthly payments, with the option to buy the item outright at some point during the agreement. At each payment interval the customer can renew the lease, return the item to end the arrangement, or exercise the option to purchase it, which distinguishes the model from ordinary rental, which carries no purchase option, and from an installment plan, which commits the buyer to eventual ownership. The practice originated in the United Kingdom and Europe before becoming established in the United States during the 1950s and 1960s, and the industry today serves millions of customers through thousands of dedicated stores across North America.