New report: Debunking myths and redefining the lease-to-own consumer

Many merchants think they know the lease-to-own consumer, but chances are they are mischaracterizing them or thinking too narrowly — and it's costing them sales.

Nearly half of U.S. consumers are non-prime or credit invisible.¹ Many of them are likely already visiting your store or website, without you knowing.

Volume V of the State of the Lease-to-Own Consumer Report takes a different approach from prior editions. It focuses on something data alone cannot fully explain: the life circumstances behind the credit score and what leads someone to use lease-to-own, through five distinct segments.

Non-prime is a point in time, not a type of person

Data does a good job defining this population, but the numbers can leave important context out of the story. The why behind the credit score. The life circumstances that lead to a challenging financial situation. What makes lease-to-own the right fit at a particular point in time.

The five segments in this report are not a system for identifying or labeling customers. They are a window into how large and varied this population really is. The segments may surprise you.

Do you know who the non-prime consumer is? Read the report to find out.

What this means for merchants

You will not know any customer's backstory, and that is the point.

If you already offer lease-to-own, the most reliable approach is to present it consistently to every customer, without assumptions about who needs it. The customers described in these five segments likely want to shop with you. Making lease-to-own a standard part of the conversation ensures no one walks out without a financing option that fits.

If you do not yet offer lease-to-own, this report makes the case for adding it. Non-prime consumers are a large, purchase-motivated part of your customer base. Without a payment option that fits their situation, they will go elsewhere.

¹ "The Consumer Credit Card Market." Consumer Financial Protection Bureau, 2023

The consumer segments in this report are illustrative and educational only, and are not intended to help merchants identify or make assumptions about individual customers. Merchants do not set eligibility, terms, or pricing. All Koalafi lease-to-own decisions are made by Koalafi under its own underwriting criteria and are never based on race, color, religion, national origin, sex, marital status, age, or receipt of public-assistance income. Lease-to-own should be offered consistently to all customers.