How The Rent-to-Own Method Works
One benefit of rent-to-own cars is that they’re easier to get. The rent-to-own market allows people to get a car without requiring a credit check. This makes it much easier to qualify for a purchase if your credit is poor or non existent as a rent to own Purchase does not require a credit check. All you need to show is proof of identity, residence, and income.
Payments are made on a weekly rather than monthly basis, and usually range from £20 to £100 per week, depending on the base price of the car. You’ll probably also need to make a down payment on your car. There are no interest costs that can build up, but there may be a fee for late payments. Generally, you make payments directly to the car dealership, or payments may be managed using a national bill-paying service such as “Stripe”. It’s something like leasing a car except that at the end of the rental agreement, providing all payments have been made, ownership of the vehicle is transferred to you, (a small service charge may be made to expedite the transfer of ownership).
How can rent to own dealers afford to offer these interest payment packages?
The Rent to Own dealers are usually selling cars which a main dealer has passed on through the trade because it may have a high mileage, or it could be a lower spec vehicle which are difficult to sell for many dealers or make or model they do not want sell themselves or may not have a full service history. Most of these cars are perfectly good cars and offer great value for a rent to own buyer, however, don’t expect a Rolls Royce quality car when you are buying a lower spec car, common sense must prevail and at the end of the day we all have to accept that the terms “You get what your pay for” or “don’t expect Gold for the price of Silver” usually means exactly what it says.
Will it work for me?
In answer to that question, the Rent to Own method of car purchase is good for anyone who has a poor or non existent credit rating because no credit check are made, it’s usually just a matter of providing proof of ID, Proof of residency, and proof of your ability to pay such as a payslip or a copy of a recent bank statement. Its a tried and tested method and works well if you maintain your payments, however on the downside you could end up with no car at all if you fail to maintain your obligation to make the payments on time as the car may be re-possessed for breach of contract, But you make all of your payments on time then the rent to own system is a good way to get your hands on a vehicle quickly at a reasonable cost.