The rent-to-own car finance plan allows you to rent a car with the intention to own it at the end of the contract period. Another option is to return the vehicle you have been renting for another rent-to-own car, similar to a trade-in.
5 Benefits of signing up for the rent-to-own finance option
Unlike vehicle financing available from dealerships and banks, the rent-to-own car finance option assists customers who do not qualify for traditional vehicle financing. Here are some key benefits of rent-to-own car finance plans:
No credit check
There are no credit checks. Unlike a contract to purchase a vehicle, rent-to-own car agreements are simple. This option is especially favourable to customers who have a low credit score or are blacklisted.
No hidden payments
You do not pay interest as a rent-to-own contract is not a financial loan. Instead, you rent a car and then have the option to own the car at the end of the contract term. The monthly rental amount often includes basic insurance, roadside assistance, and a vehicle tracking device.
Upgrade or downgrade anytime
Customers can terminate their rent-to-own contracts at any time, subject to the terms and conditions contained in the signed rental agreement. Most rent-to-own contracts allow customers to upgrade or downgrade their vehicle after eighteen months.
With a lease agreement, you will have uninterrupted use of the car rather than ownership of it. At the end of the agreed period, you can choose to take ownership of the vehicle or return it. You can drive a new car every few years and benefit from the safety, fuel economy, and performance advancements of newer models.
Entering into a rent-to-own agreement allows you to build equity and have access to your own vehicle, while you improve your credit score. At the end of the agreement, the leaser can either return the car, sign a new contract, or settle the guaranteed future value and take ownership. Usually, rent-to-own vehicle financing companies only ask you to provide your ID, proof of residence, proof of income, and a payslip, as you will need to show that you can afford the rental payments.
Want to find out more about rent-to-own vehicle financing? Then get in touch with Earn-a-Car today.