People are being very cautious. I think that's why they are seeing the value of renting their furniture and other durable goods rather than buying them outright.
Tom Bailey, Franchisee, ColorTyme

Photo ColorTyme

Tom Bailey, ColorTyme franchisee.

With over 20 years as a rent-to-own professional, ColorTyme franchisee Tom Bailey has seen first-hand the value that a rental-purchase agreement offers consumers during difficult economic times.

"In this troubling economy, consumers are tending to avoid large cash outlays and they're trying to keep from having to put large purchases on their credit cards," Bailey says. "People are being very cautious. I think that's why they are seeing the value of renting their furniture and other durable goods rather than buying them outright."

Bailey began his rent-to-own career in 1987 as an account manager for a Rent-A-Center franchise operated by Comcoa (see story).

Bailey says ColorTyme is an attractive choice since customers are not required to make large down payments or commit themselves to a long-term purchase contract. "If one of my customers loses a job or faces other financial trouble, all they have to do is call me. I'll suspend their rental contract until they get back on their feet," Bailey says.

"We'll pick up the merchandise and give them store credit for every penny they've spent when they are ready to resume their agreement," he added.

Bailey will be honoring his customers as his special guests at a Chamber of Commerce ribbon-cutting ceremony tomorrow - Friday, March 6 - at his new Wilmington, NC ColorTyme store. The Wilmington Chamber will conduct the ribbon-cutting ceremony at 3:00 pm. Several local government officials are expected to attend.

ColorTyme, the nation's oldest rent-to-own franchisor, is celebrating its 30th anniversary this year. The company is a subsidiary of Rent-A-Center (NASDAQ:RCII).

"The citizens of Wilmington have been welcoming to me and our store employees from the very first day we opened," says Bailey. "That's why I'm making them the center of attention on March 6."