While it was once a luxury, owning a car is pretty much a necessity nowadays. So, if you’re tired of spending money on cabs, or having to miss out on certain opportunities just because you don’t have a car, chances are that you have decided to get one for yourself as soon as possible. Or, perhaps you have one already, but you believe that it is time for a change. Click this to learn about some signs that you should get a new vehicle.
Whatever the case is, you may be a bit stuck, given the fact that you may not have enough cash lying around and ready for you to spend it on a new vehicle. So, you are probably researching different financing solutions, aiming at finding the right one for you. And, if you’ve done some research on that already, chances are that you’ve come across the rent to own solution.
Of course, you don’t want to jump right towards it, before figuring out if it is really such a good idea. Those programs are often the best path for people that don’t qualify for traditional financing, as well as with those that don’t want to bother with it. And, it provides you with the opportunity to get a new vehicle even if you don’t have the money right now, making things much easier. Yet, as mentioned, you don’t want to go for it before figuring out if it is really a good idea, and before you also take the time to understand how you can choose the right plan. So, let us answer those questions for you.
Is This A Good Idea & Why?
If you are looking for a short answer to the question of whether this is a good idea, here it is. Yes, it most definitely is a good idea. You basically lease a vehicle and you make regular payments over a certain period of time, after which you have the option to buy the car, with all of those payments you’ve previously made counting towards the end price. That is, with the amount of those payments being deducted from the final price.
Here’s more on how it works: https://www.investopedia.com/articles/personal-finance/082315/renttoown-car-how-it-works.asp
Why is it a good idea, though? Well, for one thing, most dealerships that offer this solution don’t require strict credit checks. Meaning, thus, that you will be able to get your vehicle even if you have a poor credit score, while you wouldn’t qualify for traditional financing with it. So, in short, approval is easier, as you are often required to only show proof of income and thus prove that you will be able to make those regular payments.
Furthermore, the payment terms are often quite flexible, thus allowing you to create a schedule that works for you. Sometimes, they are structured weekly, or perhaps bi-weekly, which is often favorable for a lot of people, due to their income schedules. The point is that the terms are flexible and you can negotiate what works best for you.
On top of that, this process is much faster than the process of getting traditional financing and then finding a vehicle to buy. With the rent-to-own option, you get access to the vehicle immediately, which is a great thing, especially if you are in a hurry to replace your existing car, or to get your very first one, and you don’t want to wait for far too long. Basically, you get access to reliable transportation right away.
In some cases, you may even be able to build your credit score through this option. Of course, not all dealers offer that option, so you may want to check beforehand, if building or rebuilding your credit score is important to you. Put simply, some programs are designed so as to report payments to the credit bureau, thus leading to you rebuilding your credit score over time.
How to Choose the Right Plan?
Now, if you live in Perth, and you’re looking for this solution, you’ll want to know how to choose the right plan for you. There are, without a doubt, plenty of rent to own car Perth programs, and dealerships that will be ready to provide you with what you need. It is your task, naturally, to choose the right dealership, and thus the right program, and you now want to know how to do that.
The most important thing to do here is check the reputation of the dealerships you’re considering, and take a look at the reviews written by the previous clients, so as to get a better understanding about how happy they’ve been with the solutions they received. Of course, apart from that, take a look at the overall program and assess the total costs. And, don’t forget to inspect the car beforehand, as well as clarify ownership terms. Keep your budget in mind at all times as well, so as to be sure that you can make all the payments and finally own the vehicle.