Rent-to-own is becoming a popular option in the worlds of real estate and automobiles. When it comes to renting-to-own a car, the procedure is quite simple. You put a down payment on a vehicle and then continue to make regular, scheduled payments on it until the rental term is up. At that point, you can apply some or all of the down payment and regular payments towards the cost of buying the vehicle outright. Before you decide to take advantage of a rent-to-own vehicle option, however, make sure it's the right choice for your unique situation.
What's Your Credit Like?
Start by considering your credit history. Do you have established credit and, if so, is your credit score above average (around 700)? If so, then you may actually be able to save money in the long run by outright buying or leasing a car rather than going with a rent-to-own option. On the other hand, if you have less-than-average credit, then renting to own might be your best option because this type of financing typically doesn't require a credit check. Keep in mind, however, that your rent-to-own payments generally won't be reported on your credit, so you can't use them to build your score, either.
Looking to Buy New or Used?
Secondly, ask yourself whether you're in the market for a new or used car. If you're dead-set on buying a car that's brand new off the lot, then rent-to-own probably isn't going to be a viable option for you; that's because most rent-to-own lots only offer this option on used cars. If you were thinking about buying or leasing used as a means of saving money anyway, then a rent-to-own option can be a great way to make financing much easier.
Can You Afford Maintenance?
Finally, whereas a traditional car lease would usually come with free maintenance (tire rotations, inspections, etc.), the same cannot be said of a rent-to-own car. Therefore, if you're thinking about taking this route, you'll want to make sure that you can also afford the regular preventative maintenance costs that come along with having a used car. Since you'll likely be making weekly or monthly payments on the vehicle (along with paying to insure it), this is something you'll want to plan ahead for so that you can take care of your rent-to-own car and ensure it's still running well by the time you purchase it.
For more information, speak with experts like Rent To Own Autos.
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