Money matters story Richer people turn to renting electronics By Lema Samandar From: AAP May 25, 2010 12:25PM Radio Rentals has seen a shift in its customer base, with wealthier people renting electronics / File Source: Reuters
PEOPLE on six figure salaries are renting home appliances as weaker economic conditions and the impact of rising interest rates on large mortgages hit their finances.
Thorn Group, owner of the Radio Rentals brand, says it has seen some change in its customer base amid the global downturn.
Thorn chief executive John Hughes says any time there is any form of economic uncertainty, rental companies do well.
The company is now seeing people on higher incomes signing up to rent household goods.
"They may be people on two incomes, they may be earning $100,000 a year but they're heavily mortgaged," Mr Hughes told AAP.
"They can't afford to go out there and buy a brand new washing machine (or) refrigerator and they find rental as a very good alternative."
However, the company's mainstream customers continue to be people from the lower socio-economic demographic.
"We do have a lot who are on Centrelink payments, government pensions etc," Mr Hughes said.
"They find it difficult to manage their own monies and finances and they find the offering we provide them gives them a good level of security but at the same time a good level of flexibility," he said.
White goods continued to be the most popular items to rent.
But demand for flat panel TVs increased by 28 per cent and is expected to continue rising strongly as households switch over to digital broadcasting and desire increasingly larger screens, Mr Hughes said.
