If you are considering a rent-to-own car, you may be a little confused about the process. After all, it's not a typical vehicle purchase, but it is not a lease either. Here are a few questions and answers about rent-to-own vehicles to help you understand how renting to own works:
What is a rent-to-own vehicle?
When you rent-to-own a car, you are agreeing to pay for the automobile in the same manner that you would if you were renting it. However, with a rental car, you would return the vehicle to the rental company at the end of your rental term. When you rent to own a car, at the end of your rental agreement, some or all of the payments (depending on your rental agreement) will be applied to the purchase of the vehicle.
What is required to rent to own a vehicle?
In order to rent to own a car or truck, you may be required to pay a down payment. In addition, the rent-to-own dealership may require a copy of your identification and proof of income. Your driver's license may suffice for your identification, and a recent pay stub may indicate your income.
Payments are usually made weekly and are often between $75 and $100 weekly. In addition, if you miss a payment, there may be no added interest. Instead, a one-time late fee may be imposed.
Will they check my credit if I rent to own a car?
Rent-to-own automobiles do not require a credit check. In addition, the payments that you make during your rental period may not be reported to a credit agency.
Is renting to own the same as leasing?
Renting to own a car is different from leasing a vehicle. A leased vehicle does not require a down payment. In addition, leased vehicles are typically new automobiles. However, rent-to-own cars can be pre-owned.
Also, if a leased vehicle needs to be repaired, the repairs maybe offered at no charge to you. However, rent-to-own automobiles often require you to purchase an additional warranty to cover a repair.
Nevertheless, the primary difference between leasing and renting to own a car is final ownership. At no point do you own a leased vehicle. However, after your final payment, you own your rent-to-own automobile.
If you are considering a rent-to-own vehicle, contact a rent-to-own dealership in your area (such as Rent To Town Autos). A dealership representative can explain the details and requirements of the company's rent-to-own policy.