When you have bad credit, buying a car may prove to be a challenge. Most banks will not lend money to those with poor credit scores or a track record of bad credit. But there are alternatives. If you need a car but can’t deal with banks and lenders due to credit problems, consider renting to own a car instead.
Many people mistakenly believe that because their credit is not so great, they cannot buy a car. But the truth is that even people with bad credit can find a good rent-to-buy deal on a car that they like.
The other option would be to buy a car for cash. However, not many people are able to afford to buy a car for cash, and also do bear in mind that when paying large amounts of cash to buy an item, SARS will be notified and this could result in your being audited if SARS believes that you possibly have not paid your taxes on all of your income.
Rent to own a car for people with bad credit records
If you have bad credit and are looking to buy a car, rent-to-own a car is one of the popular options.
In rent-to-own programs, you pay monthly payments on the car over time until it’s paid off — similar to renting an apartment or house. The advantage of this method is that you’ll eventually own the car outright once you’ve made all payments.
But there are also disadvantages: for example, some programs charge high-interest rates. It is the downside to having had past credit problems. There is normally also a fair deposit that will also need to be paid before you are able to take the car. The reason for the deposit and higher interest rates is to help cover the risk that the lender takes in lending money or a car out to someone who has had previous credit issues.
You would also need to be in possession of a valid driver’s license as the dealership would take an insurance policy on the car with an insurance company. The insurance policy would have a clause that the vehicle is only covered if you have a valid driver’s license.
Find the right dealership.
The best way to determine whether or not you can purchase a car with bad credit is to find a dealership that is willing to work with you. This can be as simple as asking your friends and family members if they’ve ever heard of any dealerships that might be willing to help you out, or doing some internet research.
If there are specific makes and models that you’re interested in, it may also be worth looking into those vehicles on websites such as Rent 2 Buy It – They are leaders in rent-to-own-a-car deals and have access to a wide range of pre-owned vehicles.
When considering which dealership will give you the best deal on rent-to-own agreements (RTOs), remember that every dealership will have its own policies and terms. For example, some dealerships may have a term period of 54 months while others have a period of 72 months. Some dealerships may also include a vehicle warranty or service plan for the vehicle. Most dealerships will include a fully comprehensive insurance policy and vehicle tracker.
Because of these variations in the terms of the contracts, I would sincerely advise you to consult with our expert, Vinece, about the possible deals that you would qualify for.
Now that you know more about buying a car with bad credit, what are you waiting for? Contact Vinece right away so that she can find you a suitable vehicle.