How Rent To Own Differs From Leased Cars Option?
Rent to own cars is often confused with the term leasing of cars and therefore it becomes pertinent to give you a clear idea about what actually the term means and how does it work before you make a choice.
Rent 2 own cars is the plan under which the car is given to the individual post entering into an agreement. The user of the car will pay the rent of the car but will not need to give back the vehicle towards the end of the term and rather a part of whole money paid as rent will be sourced towards the purchase. To have a clear understanding consider an example where you take a car from the dealer who deals into such business and make down payment of the car and then keep paying the rentals at regular intervals. In order to rent the car you will need to furnish ID proof, residential proof and income proof. Having done all the formalities and paper work, you are good to go.
Towards the end of the term, either all the payment made by you or the portion of it is directed towards the purchase. Now, one of the major questions that arise is whether this is a good strategy for the people who do not have very sound credit or not. There are situations when even after trying to the core, circumstances do not turn in your favor and for some or other reason you cannot afford paying the loan taken. In such situation, many go for the rent to own car policy.
Difference between rent to own and leasing
First difference comes in the terms of ownership of the car in both the situations. In leased vehicles, payment is not directed towards the purchase at the end of the term. The user of the car will need to give the car to the owner once the term ends.
Second difference is that if you will lease the car, sound credit is required whereas in other case there is no need of any such check on the credit. If it is rent to own then the user is not required to inform the credit bureau.
If you are going for the rent to own way, then there will be down payment required whereas in the situation of lease there will not be any down payment required. In case of leased vehicles, you generally get the new machines but this is not the case in rent to own type. In rent to own, the dealers are not approved by any franchisee and therefore offer the used vehicles. This page will tackle an in-depth information about rent to buy cars you should try this page for reviews.
Drivers do not get as much benefit of getting the cars repaired in the rent to own as they get in the leased vehicle. User needs to get their hands on warranties in order to get the car repaired.
After getting an idea of what actually rent to own means and how it differs from the leased vehicles, you will be able to make better and sound decision considering all factors before deciding between the two.