Introducing Rent to Own Cars
Rent to Own Cars Programs offer people a chance to try out vehicles without the commitment of ownership. This way it is ok to be uncertain about wanting to own a certain vehicle for ever. By going through with acquiring Rent to Own Cars, customers with no credit or bad credit can get a used vehicle similar to if they were working with Buy Here Pay Here dealers. No credit score is needed! The focus would be on how much you can afford to pay and if the payments need to be paid monthly or bi-weekly.
Similarities and Differences between BHPH and Rent to Own Cars
Rent to Own Cars does not bind the customers to a long term contract. Where as BHPH dealers given longer contract periods so that the entire price is collected from the customers.
The big advantage of both programs, whether it beRent to Own for used cars or Buy Here Pay Here financing that uses in house financing, is that all credit scores are accepted. So for all those customers who were worried about their credit scores, they can get the help they need. But for customers who are interested in using this to improve their scores too, it might not be the case! Both ways might and might not improve your credit scores! This is all up to the specific dealership. Dealerships know that reporting payment history to the credit bureau needs special software and employees running these soft wares. This costs additional money to be spent on running the business. This is why smaller dealerships choose not to deal with the credit bureau where as big dealerships or franchised locations can afford this marginal cost as it adds to the quality of their business.
With Rent to Own options, you get the benefits of both worlds, that is of renting and of buying at the same time. This is because you are not committing yourself to a long term agreement and at the same time, you feel that the money you pay each time would not all go to waste if you choose to own the vehicle later on.
But keep in mind that by agreeing to go through with rent-to-own, you are committing yourself to what is known as mileage limits. As with any car renting, you agree to use the vehicle within a pre-determined mileage limit. If you would go over that limit, there would be a fee per extra miles driven. This would be charged when you return the vehicle back to the dealership. However, should you choose to buy the vehicle instead of giving it back, then this would be waived. In other words, if you choose to own your rent2own vehicle, then you would not be charged for the extra miles driven as the vehicle’s ownership would be transferred to you! But if you choose to return the vehicle after you have rented it for a while, then it would be only fair to charge the customers who over used the vehicle as this would lower the potential price that the dealership can resell the vehicle for to other people.
Terms of Rent To Own Vehicles
Rent to own auto dealerships usually require that the agreement is between one to three years. Of course this gives plenty of time for customers to try out the vehicle and see if they would like to own it or return it back at the end of the agreement duration.
To get started, customers are asked to fill out the online pre-approved application form. This helps the dealerships in determining the amount of money that you can afford to use in monthly payment so that a range of pre-approved vehicles can be assigned to you. Keep in mind that you need your down payment ready along with your proof of income and ID and proof of current address. Have them ready and stop by to choose your rent to own car.