A Comprehensive Guide on Rent to Own Cars
Rent to own cars involve the payment of small and affordable premiums, on a weekly or biweekly basis, in the hopes of meeting the car’s buying price in full. This service has gained a lot of popularity in the recent years, mainly due to the great benefits it has over car leasing, especially those with poor credit. This article gives you a guide on how to search for rent to own cars, how they work, and will give you the ability to make an informed decision.
Conduct Sufficient Research
Depending on your geographical location, a simple online search can give you a number of best car rental companies or dealers that provide this service. Each of these companies has their own, specifications and stipulations; take a look at them carefully and compare. You will notice that most of these companies do not perform a credit check on the financial status of their potential clients. This simply means that even those individuals who are unemployed or have a poor credit score can access these services and get approved. You will have to have means to pay for the monthly payment or you could lose any monies that you have contributed toward the purchase of a car.
This service is generally affordable to most people and draws individuals with poor credit. The fact that some companies do not place any interest rates on the weekly premiums, make them a great prospect for clients. Once the initial deposit is paid, the client will then be given a selection of cars to choose from. Generally speaking these cars are used. When choosing a lease to own car then you will have new cars to select from.
The Rent to Own Contract
The contract details the amount of monthly premiums to be paid, the initial down payment and the duration of payment until the title of the vehicle will be passed to the buyer. Generally, most rent to own car companies give the buyer a rent period of between 18 and 36 months. The weekly or monthly premiums will be determined by the duration of the contract. Watch out, many times you could end up paying 3 times the total price of the car. Still if you have no other option because of bad credit you can still usually make payments on affordable rent to own cars. The down side is you will not build credit with this type of arrangement.
The Application Process
Applying for this service is quite simple. Since there are no background checks on your income sources and financial status, the application process can even be done online. The company will require you to provide some information about yourself, your contact and physical addresses and your current source of income or a bank statement. You will also have to indicate the initial deposit you are willing to pay, the weekly premiums you can afford and the type of vehicle you would like to buy.
After your application is approved, the rent to own car dealer will get in touch with you and schedule an appointment. During the appointment, you will be asked to pay for the initial down payment and the car keys will be delivered to you with a payment schedule for your installments.
Other Charges To Look Out For
Ensure that you familiarize yourself with delayed payment fees, as stipulated by your service provider. It is possible that something might go wrong during the repayment period, and you must know of the additional charge you will be required to pay, in the event that your weekly premium is late. Some companies will penalize you if you are late in your payment and will start at the beginning of the contract period and you will have to “repay” all the payments you made prior to you being late. Read your contract thoroughly especially the fine print.
You could look at rental car companies for cars that they are selling. You might be able to work something out with them at a price you can afford. Also sometimes you can purchase a car with a high interest rate without all the hassle of a rent to own contract. You may just want to rent a car for a short period of time, the car rental rates are cheaper in the long run than trying to purchase a car that you may not be able to afford.
Every situation is different and it is best if you look at all your options before signing on the dotted line. You may find a great company that will work with you and give you a good rate on a rent to own auto.
Check out this article for more information on the Pros and Cons of Rent to Own Cars.