The truth is that it isn’t always easy to find a rent-to-own car, but if you are not careful, you could actually pay more than the purchase price of the car or have problems with your credit when applying for a rent-to-own car. There are some things that you should look out for in order to get the most benefit from renting your next vehicle.
Check your credit score
When it comes time to apply for a rent-to-own car, you will need to have an established line of credit. However, if your current credit score is under 500, then you may have some issues being approved for one of these types of transactions. If this happens, don’t worry, as you can always improve your credit score and then go back and look for a rent-to-own car.
Look for very low down payments
If you don’t have the cash to purchase a new or used car outright, then you may be tempted to find a rental company that will allow you to pay weekly or monthly instead of all at once. While this is fine in some cases, it is best to avoid rental companies that ask for large deposits unless they also give you reasonable rates on the vehicle. When it comes time to apply for one of these types of transactions, make sure that there is no large upfront fee or payment required other than your first week’s payment.
Watch out for hidden fees
As previously mentioned, some rental companies will ask for a large payment before you can actually buy the car and then expect that first week’s payment to go towards this. This leaves you with nothing but problems if things go wrong and you can’t make your payments on time. It is best to avoid these types of deals as they are usually only there to take advantage of less than perfect credit customers who need a quick way to purchase a new or used vehicle.
Look for weekly and monthly rates, not daily
When you apply for one of these transactions, it is important to look at the weeks and months rates as opposed to just daily. If you allow yourself two weeks instead of just one, then even if your initial deposit isn’t applied, you’ll still be able to purchase the vehicle if you can afford an extra week’s worth of payment. This way, your credit isn’t ruined simply because you couldn’t pay that one extra week.
Avoid sub-vendor lists
As previously mentioned, not all companies involved in renting cars are reputable and will do what they can to take advantage of their customers for an early deposit or large upfront fees. That’s why it is so important to look at the company you are looking into buying a car from and ask them about any sub-vendor lists or bad reviews they may have received online. If there are reports out there that state this garage has been known to take advantage of its customers, then it’s time to either find another place to apply for your rent-to-own car or find a new company altogether.