Say Hello to More Gen Z Customers with Lease-to-Own Financing

Nov. 1, 2023
Don't let these customers leave empty-handed. Offering alternative ways to pay over time, such as lease-to-own financing, can be a lifeline for your younger customers with subprime credit.

Generation Z thinks differently about most things, including how they want to shop and pay for what they need. And that means tire shops will have to think differently, too.

Born between 1997 and 2012, Gen Z has been described as self-reliant, socially conscious, and financially cautious. As this generation moves into adulthood, they now make up 27% of the U.S. population and have an estimated $360 million in disposable income.

But not all members of Gen Z are doing well. Many have shouldered a great deal of student debt, are struggling to find jobs, and are facing unprecedented economic uncertainty.

Gen Z's credit profile differs significantly from older generations. Because of their age, many have little to no credit history, making it difficult for them to qualify for traditional financing options. Those who do have credit often have lower scores due to their limited credit history and higher utilization rates. And 31% of Gen Z of Gen Z don't have savings to cover an unexpected expense.

Don't let these customers leave empty-handed. Offering alternative ways to pay over time, such as lease-to-own financing, can be a lifeline for your younger customers with subprime credit. Lease-to-own financing provides a pathway to ownership without requiring a significant upfront payment or perfect credit.

What Is Lease-to-Own Financing?

A lease-to-own option is not credit or a loan. Instead, a lease-to-own finance company, such as Snap Finance, purchases the merchandise from the retailer, and then leases the merchandise to the customer. The customer takes the merchandise home and makes lease payments over time until they’ve made the payments necessary to obtain ownership.

What’s in it for your business? Offering lease-to-own financing can help maximize sales, drive traffic to your store, and increase customer retention. Plus, there’s no hassle for retailers like you. If a customer defaults, the lease-to-own provider takes the hit – not your business.

By providing help to Gen Z customers when they need it most, you can strengthen relationships with these young customers, building loyalty and increasing opportunities for repeat business. And that can mean a lifetime of sales for your shop.

Can alternative financing grow my business?

Your business can gain a significant revenue boost by offering payment options for tires, rims, and related services.1 Because Snap considers factors other than scores from major credit bureaus, applicants of all credit types and ages are more likely to get approved.2 More approvals mean more opportunities to close sales and increase customer loyalty.

Snap works to make everything as transparent and efficient as possible for consumers, no matter their financial background. Snap’s application process is designed for shoppers to quickly apply with no impact to their FICO® score.3 Decisions take seconds, and Snap expedites funding to your account.

Zeroing in on Gen Z

Offering lease-to-own financing can attract Gen Z shoppers by addressing their financial concerns and meeting their need for flexibility. It can also help businesses tap into an emerging customer base and drive increased sales.

If you’re ready to make lease-to-own financing available to your customers, visit Snap Finance. Learn how our lease-to-own financing can work for your business.

The advertised service is a lease-to-own agreement provided by Snap RTO LLC. Lease-to-own financing is not available to residents of Minnesota, New Jersey and Wisconsin.

1 Some restrictions on leasable auto parts and services may apply. See merchants for restrictions. Snap lease is not available at auto-related merchant locations in some states.
2 While no credit history is required, Snap obtains information from consumer reporting agencies in connection with the lease-to-own application. Not all applicants are approved.
3 Snap obtains information from consumer reporting agencies, and any application may affect the credit scores issued by these agencies, which are separate from a FICO® score. Not all applicants are approved.