Rent-to-own cars can be a perfect solution for those who are looking to buy a car but don’t have the money upfront.
Because you’re not purchasing the vehicle outright, you’ll typically need less money up front than if you’re buying it from a dealership. Along with that, some dealerships do allow prospective buyers to put a little bit of their own money down as well on top of what they borrow from the dealer. However, keep in mind that interest rates on rent-to-own contracts tend to be higher than traditional auto loans.
So, what are the requirements for a rent to own car? The following categories represent the basic criteria most facilities require:
- An applicant must be at least 18 years old. Some dealerships may offer rent to own for those who are 17, but most facilities stick with the standard age of 18 or higher.
- The individual must have a steady source of income that can afford the monthly payments on their contract as well as pay off any other existing debt he/she has.
In addition to those two primary buyers, there can be many parties involved in a single purchase agreement with a rent-to-own dealership. For example, parents might sign on as co-borrowers along with their children if they want to help them out and take part in the transaction at the same time. The same goes for roommates who have been living together or spouses that would like to share in the purchase.
Renting to own a car can be a great solution for those who are looking to buy one but don’t have the money upfront and need more time to save the funds necessary. However, it should be noted that because interest rates tend to be higher than traditional auto loans, it’s important to know what you’re getting yourself into before signing on any dotted lines.