Do you have a low credit score, but you’re in need of driving your own car? Is owning a car necessary, but you’re unsure about making a long-term purchase? The traditional path to car ownership often involves a significant upfront investment and a lengthy financial commitment, which becomes especially difficult if you have a low credit score.
Today, this is hardly a problem. With a rent-to-own car program, you get all the flexibility you need. Not sure what this is? Read our blog post below.
Rent to own a car: What is it?
A rent-to-own program lets you rent a car for a period of time and then use a portion of your rental payments to purchase it. The process is very similar to leasing a car. With rent-to-own, part of the payment goes toward the purchase price. In that way, if you decide that you want to purchase the car, your payments will be applied towards reducing the sale price of the vehicle.
As there are usually no credit checks, this plan can help anyone with poor credit history to purchase or temporarily use a vehicle. Usually, approval is based on income and driving history, not your credit score; that’s why it’s so easy to start driving your own car again. Payments are generally made directly to the dealership, and in order to qualify, you only need your driver’s license, proof of income and source, and confirmation of insurance.
What types of cars are offered through rent-to-own?
You will get a different car depending on which car dealer you decide to work with. From new and slightly used cars to the latest EV, it all comes down to the auto dealer you choose.
The Benefits of Rent-to-Own for Cars
Accessible Ownership: Rent-to-own gives anyone with a low credit score the ability to get behind the wheel of a car and work towards ownership.
Test Drive Option: The rental period allows you to test the vehicle extensively before committing to its purchase, ensuring it suits your needs and driving preferences.
Credit Improvement: Consistently making on-time payments during the rental period can help improve your credit score, which might make it easier to secure financing for the eventual purchase.
The downsides of Rent-to-Own for Cars
Higher Costs: Rent-to-own agreements usually have higher overall costs compared to traditional financing, mainly due to the higher interest rates.
Limited Vehicle Choice: Your options for vehicles might be more limited compared to traditional purchasing or leasing, as few auto dealerships offer rent-to-own programs.
Uncertain Future Value: It is possible that the predetermined purchase price does not accurately reflect the market value of the vehicle at the end of the term, resulting in overpayment.
Rent to Own vs Traditional Financing
Traditional financing usually comes with interest rates, down payments, commitments, and difficulties getting approved due to credit scores, while it leads to outright ownership once the loan is repaid.
At the same time, rent-to-own provides you with unique flexibility, with no commitments, no credit check, and the ability to choose whether you want to purchase the vehicle at the end of the rental term.
Are You Ready To Rent-To-Own?
DriveItAway offers the flexible approach to car ownership you have been looking for. With the flexibility to return, purchase, or continue driving, this 12-month lease opens up possibilities without long-term commitments. Whether you’re a student, professional, or anyone seeking a car without the traditional hassles, the DriveitAway helps you get behind the wheel.
If you have any questions about our app or our in-house finance options, please don’t hesitate to get in touch with us. You can reach us at (519) 507-2277 or send an email to [email protected]. Our dedicated team is here to assist you and provide the information you need. Feel free to reach out to us, and we’ll be happy to help!