If you want to purchase a vehicle but have poor credit and limited income, renting to own a car may work for you. When you rent to own an automobile, you submit payments as you would if you were renting the car. However, at the end of the agreement term, all or a portion of your "rent" is applied to the purchase price of the car. Here are a few benefits of renting to own:
Once your last payment has been received by the car company, the vehicle is yours. This differs from a leasing agreement in which you have to return the car at the end of the leasing period.
Reasonable Buying Period
Instead of a 60-month buying term, most rent-to-own agreements cover a 24-month or 36-month period.
You Can Qualify with Poor Credit
A typical lease agreement usually requires a particular credit rating to qualify. However, rent-to-own agreements do not. In addition, payments toward your rent-to-own purchase are not recorded with the credit bureaus. No reporting is necessary because no money is actually borrowed during the transaction.
Used Car Savings
Most rent-to-own vehicles are pre-owned. Thus, the initial depreciation has already transpired, and you can get a great car at an affordable price. There is rarely any connection between a new car dealership and a rent-to-own car company. Still, the amount that you pay with a rent-to-own agreement generally exceeds the value of your vehicle.
Payments toward the purchase of your vehicle don't vacillate. You will be expected to make the same payment at a defined interval throughout the rental period. There is no ballooning.
More Frequent Payments
The rent-to-own payments made toward the purchase of your car are rarely monthly. In fact, you may make payments on a weekly or biweekly basis. This can be a real benefit if you have had trouble budgeting. There is no need to save up a lofty lump sum for a monthly payment.
No Mileage Limits
Often with a lease agreement, there is a limitation on the number of miles you can accumulate during the leasing period. However, with a rent-to-own purchase, the mileage and maintenance of the vehicle are left to your discretion.
If you believe that you would like to purchase a rent-to-own vehicle, do your homework. Check with the dealerships, like Rent To Town Autos, in your area. Several of them are likely to offer reasonable rent-to-own options with low payments.