Rent-to-own cars, also known as no-finance cars, have become a popular choice amongst many car owners. A rent-to-own car deal is a special deal whereby the car dealer retains ownership of the vehicle and you rent the vehicle directly from the dealer for a specified period. After the period is completed you have the choice to take ownership of the vehicle, usually for a small additional fee, but this varies according to the dealer.
It is also wise to note at this stage that rent-to-own car deals all include insurance and vehicle trackers in their prices. Some dealers even include maintenance plans. Not all rent-to-own deals are identical so it is wise to make sure of what is included and excluded in the deal before finalizing the contract.
- No Credit Checks: Rent-to-own car deals are designed specifically to cater to credit-impaired clients who would not be able to get financing through normal banking channels. As a result,, there are no credit checks, and clients under debt review or clients that are credit blacklisted are welcome to apply.
- No Hidden Costs: Rent-to-own cars all have extra costs such as insurance and tracker already included in the price so you do not need to budget for this extra unknown. With bank-financed cars these are costs that are not shown in the figures but are compulsory requirements before you can drive your car out of the showroom.
- Upgrades: Rent-to-own cars give customers the option to upgrade to newer models. This can often be done at any stage during the current contract. This is an amazing advantage of rent-to-own cars as in the current economic climate one often does not know what will happen tomorrow.
- Fixed Monthly Payments: Rent-to-own cars come with fixed monthly payments, so customers know exactly how much they will be paying each month. This can help with budgeting and financial planning, and provide peace of mind for those who do not want to deal with the uncertainty of fluctuating car payments due to changes in interest rates.
- Flexibility: Rent-to-own cars offer customers the flexibility to choose whether they want to take ownership of the car at the end of the lease or simply return it. This can be a big advantage for those who are unsure about their future financial situation and do not want to be locked into a long-term car loan. Most rent-to-own cars can also be returned at any stage during the contract term.
- Improved Credit Score: Rent-to-own cars can help improve a customer’s credit score, as regular and timely payments are often reported to the credit bureau. This can be a big advantage for those who want to improve their credit score and make it easier to get approved for future loans.
- No Resale Hassle: Rent-to-own cars do not require customers to sell their car, as the lease allows them to simply return the car at the end of the lease and at any time during the lease if needed. This can be a big advantage for those who do not want to deal with the hassle of selling a used car, or who are worried about getting a fair price for their car.
In conclusion, rent-to-own cars have become a popular choice due to the flexibility, affordability, and peace of mind they offer to car owners. Many people need to buy a car but are unable to do so due to poor or compromised credit records. This is where a rent-to-own car deal is most suited.
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