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Credit ratings are one of the main criteria for getting approval for a loan. If you have bad credit, you are only left with three options to become a car owner. Those options are second chance car finance, used cars brisbane and rent to own cars brisbane.

What is Second chance car finance?

Second chance car finance is also known as a subprime loan. It is auto loans for car buyers with a rough credit score. Bankruptcy or loan default can be possible reasons for your bad credit history. Higher interest rates are charged from you in second chance car finance compared to auto loans for people with solid credit. The Credit giver has software to disable the starter of the car you purchased if you fail to make payments.

What is rent to own cars?

Rent to own cars brisbane makes it easier to qualify for car purchases even if the customer's credit is less. It allows people to get a car without requiring a credit check. It is offered to individuals under a specific agreement. Like renting a car, you need to pay in instalments, but at the end of the term, you will be the car's owner, unlike rental cars. Payment on a rental car is made on a weekly or monthly basis.

How rent to own cars work?

The most prominent benefit of rent-to-own cars is that they are easier to get. Payments are usually made every week rather than monthly basis. The price of instalments ranges from $75 to $100 per week, depending on the car's base price. Interest cost does not build up, but if you make late payments, the authorities will charge a $25 fee from you. Usually, payments are directly made to the car dealership, but when a purchase is made from a large chain, it is managed using a national bill-paying service. You need to make a down payment and then regular instalments for the purchase of a rent-to-own car.

Rent-to-own car vs second chance car finance

The most significant difference is the transfer of ownership at the end of the lease period. With a rent to own car brisbane, you become the owner of the car at the end of the rental period, but in the case of second chance car finance, you are renting the car, so you need to return the car after your lease term. Unlike rent to own cars, you must pay the monthly payment in second chance car finance. If you want used cars brisbane then both options are ideal, but to skip the credit check, you must opt for rent to own car.

Pros and Cons of Rent-to-Own Cars

Pros of Rent-to-Own cars

1)  No credit check

Rent-to-own car makes it comparatively easy to get a car. If you have a bad credit history and want to own a car, this is the best alternative option available for you. Its policy of no requirement of credit checks makes it highly viable.

2) No effect on credit

Your late payment will not affect your credit. You will only be penalized a late fee, usually $25, unlike dealer financing in which your credit is affected by delayed payment.

3) No interest

You do not have to pay any interest on the top since you are paying the rental fee, which goes towards the entire sum of your loan. You are only paying dealer markup.

Cons of Rent-to-Own cars

1)  Cars are overpriced

Since there is no interest payment, these cars are usually priced higher than other used cars. This is how the dealer makes a profit without charging interest. You pay higher for the product than its actual worth, which is the biggest drawback of rent-to-own cars.

2) Frequent Payments

Average car buyer makes monthly instalments to the dealer, but in this case, you have to make weekly payments. It is normal to miss out on a few payments out of 52, for which a late fee will be charged.

3) No inclusion of warranty

If you require a warranty, you must purchase one outside the contract since rent-to-own cars do not include a warranty. If you don't buy a warranty outside and something unfortunate happens to your car, you will not have any protection.


Rent to own cars has pros and cons, whether in your favour or not. However, if they fall in your favour and you consider purchasing them, get in touch with Crossy's Car. We are experienced in rent to own cars brisbane and Second chance car finance  and provide you with the best-used cars brisbane in no time. We make sure your car buying process is smooth and hurdle free.

Source URL: https://crossyscars.com.au/



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