A rent-to-own or rent-to-buy agreement involves renting a car on a monthly basis per agreed upon contract. This is done instead of financing it through a financier such as a bank. In this agreement, you will pay an agreed minimum deposit or percentage of the vehicle’s value. This is followed by fixed monthly finance instalments (or rent) which results in you hiring the car until the last instalment has been paid. There is no interest involved. At the end of the contract term, you can purchase the vehicle, or you have the option to own your car sooner, by requesting a settlement amount.
Overview of the rent-to-own car finance option
You do not own the car. You get to use it, but you have to return it at the end of the lease, unless you decide to buy it. Up-front costs include an administration fee and the first month’s payment. Rental payments are often less than loan repayments because you are paying only for the car’s depreciation during the lease term, plus rent charges, taxes and fees. If you need to terminate the rental contract earlier than you had expected to, a minimal finance penalty may apply.
Less financial commitment
Unlike traditional vehicle financing, with a rent-to-own option, you can rent a car for a short period of time without having to financially commit to the full purchase. Many rent-to-own deals are week-to-week or month-to-month, so if you can no longer afford the payments, you can give the car back to the provider with no further commitments to pay a monthly rental fee.
Your Earn-a-Car rent-to-own car payment amount includes:
- Insurance cover
- A Matrix vehicle tracking, immobilisation, and emergency response system
- An Earn-a-Car warranty for the full term of your rental
- An accident management support service
How payments work
All payments are made via debit order which is set up when you sign up for one of our deals. Payments are to be made on a monthly basis, one calendar month in advance. If you have bought your vehicle in the middle of the month, we will work out the best pro-rata rate for you. Thus, your first full payment will only be on the 1st of the upcoming month. Keep in mind that if your car is in for repairs, servicing, or maintenance work, you still need to make your monthly payments to ensure your account is in good standing.
Rent-to-own car financing implies that you rent a vehicle for a fixed contractual period. At the end of that period, and after you have made all payments in full, you can then become the proud owner of that car. Earn-a-Car makes it possible for you to own a vehicle in as little as 54 months. For more information, contact us today.