Rent to own auto dealers specialize in selling used cars to individuals with poor credit. The transaction itself consists of a down payment plus monthly rental payments which are often due on a weekly basis. Rental contracts can range from 12 to 24 months and sometimes longer depending on the vehicle in question. At the end of the rental contract, when all car payments have been made as agreed, the renter becomes the new owner of the vehicle best place to get rent to own cars
In effect, this type of rent to buy transaction is very similar to the in-house financing offered by buy here, pay here car lots. The difference is that that as the rental transaction is not considered financing, thus giving the dealer a significant legal advantage and greater flexibility in setting terms and collecting outstanding payments.
Nevertheless, rent to own car programs have become very popular because of their no credit check policies and guaranteed approvals. It is often a last resort choice for many to finance the purchase of a used car.
The advantage of working with a rent to own car dealer is that the cars are often less expensive than those sold by traditional buy here, pay here auto dealers. Many rent to own car dealers report to the credit bureaus, thus helping the renter re-establish a positive credit history while making timely payments on the rent to own vehicle.
When choosing a rent to own car dealer to work with be sure to do your homework first and learn how rent to own car programs work. Make sure you deal with a dealer that will report your timely payments to all three major credit bureaus (Experian, Equifax and Transunion). Also, ask if they will accept monthly payments rather then weekly payments. Making a weekly trip down to the dealership to pay for your car can become a major hassle quickly. Lastly, have a mechanic or someone with experience working with cars take a good look at the vehicle itself. You don’t want to get stuck with an unreliable car after making such a significant investment.
In summary, if you are looking to purchase a car and your poor credit will make it difficult for you to get approved for traditional auto financing, a rent to own car program can offer the possibility of buying a used car regardless of your credit history. These programs are also a good choice for people who need to buy a vehicle, but do not want a credit check done.