Buying a car is a major milestone for most people. It is also a big responsibility that can incur a lot of expenses if you don’t do your research beforehand. Buying a car with cash is the easiest way to buy one, and you are able to save a large amount of money by not having to pay interest fees over the duration of the contract. However, very few people do have the financial resources to buy a car with cash.  Here are a few alternate finance options to consider:

Bank Finance:

Those with a positive credit score might opt for this option. You apply for vehicle finance directly from a bank to buy your car. However, interest rates for these loans are often high and do depend on your credit score.  The interest rates are not fixed, so you will need to take precautions and anticipate fluctuating interest rates. Taking out a loan with the bank can also make more expensive options look tempting, but you will feel the effect of impulse buys in the long run. Depending on your agreement, you may also need to take out more expensive car insurance to protect the bank’s interests, which means higher monthly expenses. After taking all these precautions, if you fall behind on a payment or two, the bank may repossess your car. 

Dealership Finance:

Essentially, this finance option is similar to taking out a vehicle loan from a bank,  the difference is that dealer-arranged financing saves you time and effort as the car dealer approaches the bank and acts on your behalf. Once you have decided on your dream car, you will fill out a credit application, which the dealer will submit to several banks, on your behalf, to obtain the best possible vehicle finance plan and options. The same rules and considerations outlined above, apply. 


Rent-to-buy options have become increasingly popular in recent years. A rent-to-buy car finance plan is similar to leasing a vehicle, but over a longer period of time. However, Instead of handing the vehicle back to the leasing agent at the end of the term, you get to keep the car.

This is a worthwhile option for people who would like to own a car. It is also a good choice for business people, as reliable pre-owned cars are available and the monthly fee does include basic insurance, roadside assistance and built-in tracking device. 

Unlike with bank and dealership finance, those who are blacklisted or have a negative credit score, are also eligible for rent-to-buy easy vehicle finance. With rent-to-buy financing, you do not take out a new line of debt, and a credit check is not part of the application process. An upfront admin fee is required, thereafter payments remain fixed every month, with zero interest, as per the contract agreement. 

Rent-to-buy contracts may be upgraded, downgraded or terminated. There may, however, be a mileage fee depending on the number of kilometres you drive each month or year, and the car may be repossessed if, at any time, you are unable to make your monthly repayments. Road costs that include toll fees, car licensing and having to pay for services and maintenance are for your own account. 

If you can stick to long-term financial commitments, there is no reason why the rent-to-own a car option should not work for you. Depending on how much you are willing to pay each month, your ideal car could be yours a lot sooner than you think! Contact Earn-a-Car today to find out more.