If you need to buy a car, but have severely damaged credit, you may consider a Rent to own option. Acquiring one of these vehicles typically requires a down payment, but no credit check, so it’s easy to qualify for rent to own programs. However, there are some drawbacks associated with renting to own, so just make sure that you’re aware of all the facts before signing a contract. Renting to own a vehicle isn’t leasing. Although it seems like a very similar concept, agreements always end with the lessee turning in the car to the leasing company. When you enter into a rent to own vehicle contract, it is understood that you will own the car after the last payment is made.

How Do Rent to Own Car Programs Work?

Finding a Dealership That Offers a Rent to Own Program

A quick Google search will show you which options are available in your area. Or, you can call around to local dealerships and inquire about whether or not they provide rent to own opportunities. There are multiple car rental companies that offer this service. Learn more about rent to own from https://en.wikipedia.org/wiki/Rent-to-own.

Ensure The Rent to Own Programs Have Everything That You’re Going to Need

Most rent-to-own dealers will want you to provide a down payment, a valid driver’s license, a utility bill to show that you have a stable residence, and recent paycheck stubs to confirm your regular income.

Select a Vehicle That Suits Your Needs

A salesperson will show you which cars qualify and assist you in selecting the one you like. When making your choice, try to think in terms of affordability. Rent to own programs convenience comes with a price. You’re going to end up paying more than the vehicle is worth, regardless of which model you choose. So, try to stay away from higher price tags to save money.

Sign Your Agreement With the Dealer 

You will probably be making payments once a week. If you decide that you don’t like the car that you’re paying for, most dealers will allow you to select another vehicle. If you discover that you really can’t afford the car, you will most likely be allowed to turn the vehicle in, but you will forfeit any money that you’ve already paid towards your contract.

Potential Problems with Rent to Own Programs

While buyers with very low credit scores can benefit from rent to own programs, certain aspects of it may inspire you to consider other options.

• Your credit may not improve with your payments. Yes, it’s true that your credit probably won’t be checked when you rent-to-own a car, but the dealer may also not report your timely payments to the credit bureaus.
• You may be driving an older car. Leased vehicles are typically new vehicles, but rent-to-own cars tend to be used models. This isn’t necessarily a bad thing. Make sure that you inspect the vehicle thoroughly! The way you would when buying any previously owned car. And no matter what kind of car you end up with? It’s important to have a comprehensive and affordable auto insurance policy.
• You will be responsible for repairs. While most leasing agreements include service and repairs, rent-to-own cars usually come with no such incentives. So, leave room in your budget for vehicle maintenance costs if you decide to go with a rent to own car option.

Learn about rent to own from https://www.investopedia.com/articles/personal-finance/082315/renttoown-car-how-it-works.asp.

Rent to Own Programs Can Be Expensive

As previously mentioned, the convenience that is associated with a rent to own cars program will cost you extra money. While it’s true. You’ll end up with a car that you own. This, however, will be after you have paid far more for the vehicle than it is worth.

Consider Rent to Own Programs as a Last Resort

Yes, the rent to own car programs are beneficial to those with bad credit. It is true, however, it can still burn a large hole in your wallet and potentially lead to more debt. It’s advised you do what you can to rebuild your credit score and payback lingering debts before going out an buying a car. Once you’ve worked on improving your credit score, you’ll have more options! And, with lenders like Car Loans of America, they offer bad credit car loans at affordable rates that aren’t comparable elsewhere. From understand rent to own car programs to auto refinancing, Car Loans of America can help you with all of your auto financial needs!

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