Downturn sparks upturn in rentals

ATLANTA, July 10 (UPI) -- The economic downturn is providing a sales boost for the U.S. rent-to-own industry, a spokesman for the sector's second-largest retailer says.

Greg Tanner, director of franchising for Atlanta-based Aaron's, says his company recorded an 18 percent hike in same-store sales last year, USA Today reported Friday.

As a result of the increase, Aaron's is planning to open 200 new stores in 2010.

"I'm in a catbird seat," Tanner told USA Today.

Rent-to-own stores lease electronics, appliances and other household items to consumers by the week or the month.

Rental payments can be applied toward purchasing the rental item but critics say consumers who do this can end up paying an exorbitant price.

Dwight Dwyer of Rent-A-Center, the nation's largest rent-to-own chain, says the ability to get a new refrigerator for less than $18 a week shouldn't be minimized.

"If they buy a used refrigerator at a garage sale three weeks later, they can end the rental with no further obligation," he says.