You are in dire need of a car. Unfortunately, you can’t just buy one right off the bat because you have a less than stellar credit. You’re down to 2 choices. You can either borrow your mom’s car or you can go for rent to own cars. If you go for the first option, your mom wouldn’t be too happy about it – especially if you use it for an indefinite period of time. As for the second option, you’ll need to arm yourself with the right kind of information about renting to buy cars.
How does rent-to-own work? For starters, you’ll need to look for a car dealership that offers a rent-to-own program. It’s best if you do a little bit of research by checking out review sites such as Edmund’s or Yelp, to have an idea about the dealership’s reputation. The next step would be to select the car that you like while you visit the dealer’s lot.
Once you’ve made a choice, they’ll ask you to sign a rent-to-own agreement. You’ll find the car’s price, down payment, the term and the schedule of payments listed down in that document. More often than not, a term can go for as long as two to three years. If you miss a payment, you won’t cause them to raise your interest costs. However, should this happen, you’ll be asked to pay a fixed fee for late payment. Don’t be surprised if the dealer installs an electronic starter interrupt in your car. This will automatically shut the car down if you failed to make a payment.
Let’s talk about the benefits of getting a car with a rent-to-own program. First, it’s easier to get your own car this way because they won’t require a credit check from you. You’ll only need to show them a proof of your identity, your home address and your income. Second, the payments are fixed and most of what you pay is applied toward your car’s purchase. Lastly, changing your mind and deciding to walk away from your agreement won’t erode your credit.
It’s important to note that warranties are not included in rent-to-own agreements. That’s why you’ll need to get yourself an outside warranty for your own protection in case your car breaks down. When your term comes to an end, you’ll be required to acquire auto insurance so that you can seal off your ownership.
Being too caught up in the excitement of finally having your own car is easy, but before you sign your rent-to-own agreement, negotiate the car’s sale price. Make sure that you’ve already done your due diligence. We’re talking about you checking the true value of the car that you’re about to purchase so that you won’t have to pay more than you need to. Moreover, you can view your car’s history by using Autocheck or CarFax. By the way, CarFax gives free odometer checks. You can use this to double-check if your car’s maintenance records matches the mileage on its odometer. Lastly, beware of ‘title-washing’ scam. This involves a salvage vehicle that’s sent to a state that doesn’t recognize or acknowledge the salvage brand.
If you’ve decided to buy a car through a rent-to-own market, you’ll find that most dealer websites will provide guidelines specific the country you live in, such as Flexibuy Rent to buy cars based in Australia.