By owning a car, you get to enjoy the convenience that comes with it, such as being able to grab your car keys and get to where you want to be at any time of the day. Buying a car is extremely exciting, however the deposit or upfront payment fee prevents a number of people from enjoying the benefits of owning a car. And, if you have a poor credit record, it becomes even more difficult to obtain really good finance terms with low interest rates.
There are alternatives to financing your car, such as a rent-to-own car finance plan. If you would like to own a car but your credit score has become a hurdle, then it is time to learn more about the rent-to-own car finance plan.
A Rent-to-Buy a Car Plan
A rent-to-buy car finance option is an agreement where you are able to lease a car with the intention of paying for it throughout the contract term. A percentage of the payments you make during the rent term is allocated to the car purchase. You won’t have to return the car at the end of the lease term and instead, the car will become yours owing to the payments you have been making if your payments are up to date.
How does this work? Firstly, You will need to make an upfront payment at the beginning of the rent-to-own contract agreement. This upfront payment is allocated to the car purchase price. The monthly or weekly payments that you make include the car rental cost and a large percentage of those payments, are allocated to the car purchase. While you can still access bad-credit auto loans to buy a car, renting to own a car is an easy vehicle finance option. There are no credit checks involved and no interest is added to the price. This agreement will not affect your credit score, although there is a penalty for late payments.
The rent-to-buy a car finance option gives you an opportunity to own the car after the rental term even if you do have a poor credit score.