Rent A Wheel
Founded in 1996, Rent A Wheel started with one store in California. Since its modest beginning, the company has become the largest Rent-To-Own Custom Wheel and Tire Retailer in the nation with over 120 stores across 15 states. The company is also the 7th largest independently owned tire dealer in the country.
Rent A Wheel was founded on the principle of providing the highest quality product and service for a fair price. With nearly 18 years of straight-up, real world experience, we understand who our customers are. That’s why we combined our mission with the offer of a rent-to-own option. Many customers buy our products and services at retail to take advantage of our low prices.
However, many customers like the flexibility of a rent-to-own transaction. This “no obligation to buy” agreement gives customers the opportunity to try the wheels and tires and return them for any reason, or they can buy them within 90 days for the same retail price as if they bought them the first day, or continue with the low payments and buy the wheels and tires at any time over the first year at 50% off the remaining agreement value. With Rent A Wheel’s flexible programs, stylish product offerings and unique brand positioning, we are confident that our franchise program offers today’s entrepreneur more potential for growth and profit than at any other time in Rent A Wheel’s history.
The Rent-To-Own Market
The traditional rent-to-own market is nearly $8.5 billion in annual revenue and having only penetrated 10% to 12% of the potential market, there are still tremendous opportunities for growth in this segment.
According to the U.S. Department of Commerce, between 2000 and 2012, American households actually experienced a decline in real median income of 6.6%. Combined with the continued tightening of consumer credit and the growing number of American households with real annual earnings under $75,000, there is an unprecedented demand for the rental of big ticket goods.
The rent-to-own customer’s wants and needs are no different from those of buyers with credit. For the millions who cannot afford to purchase products outright, or do not have the credit to finance the purchase, Rent A Wheel is quickly becoming a major source for providing custom wheels and performance tires.
That’s one of the truly rewarding aspects of operating this neighborhood business. You provide an alternative source for products to customers who might not be able to finance their purchases through more traditional retail means.
|DISTRIBUTION OF HOUSEHOLD INCOME|
|HOUSEHOLD INCOMES||PERCENT OF TOTAL SALES|
|$15,000 TO $24,999||11.9%|
|$25,000 TO $34,999||11.1%|
|$35,000 TO $49,999||14.1%|
|$50,000 TO $74,999||18.1%|
|% OF HOUSEHOLDS EARNING UNDER $75,000||68.2%|
*Total U.S. Households 117,538,000
*Sources: U.S. Bureau of the Census 2012
The Wheel and Tire Retail Market
The traditional replacement tire market is much larger than the Rent-To-Own market. According to the Bureau of Transportation Statistics, there are over 250 million passenger vehicles on U.S. roads. There are several major trends that are shaping the future of the custom wheel and tire business today. First, Americans are becoming increasingly mobile. They take an average of 1.1 billion trips daily, averaging 40 miles per trip. Additionally, the average age of passenger cars and light truck in the U.S. is 11.5 years, and currently only 8% of U.S. households do not have vehicles. According to Modern Tire Dealer, who has been covering the North American tire marketplace for nearly 50 years, U.S. replacement tire sales for passenger cars and light trucks were nearly $30 billion in 2013. Simultaneously, Americans are becoming increasingly style conscious with their vehicles and they view their vehicles as an extension of their personality. In fact, nearly 36% of the 201.6 million passenger tires sold in 2013 were High Performance or Ultra High Performance tires. The performance and customization products available today give vehicle owners the opportunity to further personalize their cars or light trucks. For our target audience, custom wheels are the driver behind each transaction, symbolizing an elite status for the buyer among their peers. This must-have, emotional purchase stems from the genuine car enthusiast background and vehicle transformation that custom wheels provide. Rent A Wheel is uniquely positioned to satisfy this market segment with the industries most extensive in-stock wheel and tire inventory and flexible buying programs.
|2013 U.S. REPLACEMENT TIRE SALES|
|TIRE TYPE||TOTAL SALES|
|Passenger Tires||$25.0 BILLION|
|Light truck tires||$4.9 BILLION|
2013 Replacement Passenger Tire Market
*Based on 201.6 Million units Shipped