Rent-to-own car financing is becoming increasingly popular in South Africa. In this blog post, we discuss a few reasons why:
A new car is considerably more expensive than a pre-owned car and depreciates considerably within the first two years. More often than not, the monthly repayment amount that you will owe to the rent-to-own car company will be considerably less than a car payment.
No bank interest rates
Generally, the interest rate for vehicle finance is significantly higher than that of a home loan. If you opt-in for a rent-to-own car finance plan with Earn-a-Car, your monthly repayment will not increase if the South African interest rate increases.
A bank will often penalise you if you are in a great financial position and decide to pay your car off earlier than the agreed contract period. At Earn-a-Car, you can select your own terms without being penalised, with a contract period of between 24 to 54 months.
No new lines of debt
With a rent-to-own car finance plan, you won’t be incurring another line of debt. You are simply renting the car until you own it. If you opt for a new or used car that needs to be financed through a bank, you will be adding a new line of debt to your name.
Easier application and approval
Many people who have been blacklisted or have a poor credit rating, struggle to get a loan for a car from finance companies and registered credit providers. With a rent-to-own car finance plan, because you are renting the car and paying the monthly rental fee in advance, Earn-a-Car will not consider your credit history. All we need to know is that you earn a monthly income and are able to pay for your car each month.
Simpler ownership process
With a rent-to-own car finance plan, you don’t own the vehicle, you are simply renting it. This means that there is a lot less paperwork and if you do meet the minimum requirements, you will be on the road within two hours, if you rent-a-car from Earn-a-Car.
Ready to get the quality car you need through easy car financing? Then partner with Earn-a-Car today.