Having a bad credit makes situations knotty when you’re trying to make a major purchase that requires financing. With bad credit in your reports, getting approval for a standard automobile loan becomes a hurdle. Such conditions have made people shift to two of the best options – bad-credit auto loans or rent-to-own cars. Both of the options are viable for prospective car buyers who need a vehicle for their day-to-day business. While the first option is considerable for those buyers wanting to steer their dream car, while the latter option is for people struggling to pay auto loans.
Rent To Own Cars Queensland – What's The Deal?
Rent To Own Cars Queensland is a contract or an agreement which is offered to individuals under a few specific conditions. With this option, you're paying for the vehicle just like you’d when renting a car. But, here’s the catch. Instead of turning the vehicle at term’s end, the money you’ve spent goes toward the car purchase. Let’s look at a simple example to understand how the Rent To Own Cars option works.
Noah’s credit score is low because of which he has decided on a rent-to-own car priced at $10,000. For this, he has paid a down payment of $1,500. He now has to pay $80 weekly ($320 per month) and he’ll own his car after 156 weeks of regular payments. This implies that he has to pay $12,480 ($80 x 156) in weekly payments until the tenure ends. Thus, the total cost of the rent-to-own car would be about $13,980, that is, $12,480 plus $1,500 down payment.
Now that you’ve understood what Rent To Own Cars is, it’s time to drop some attention to the pros and cons of getting Rent-to-Own Cars Queensland.
Pros and Cons of Rent-to-Own Cars
Pros
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No credit check car finance: as compared to other options like a contract to buy or lease a car, this option comes in handy. It’s light and stress-free policies and requirements makes rent to own cars highly appreciable.
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No interest: this car financing system is different from loaning money until you choose dealer financing, you don’t have to pay high interests. The weekly payment is the rental money which is later used towards purchasing the car.
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Your credit isn't affected: unlike the normal loaning system, you won’t be penalized for late payments. Rather a nominal late fee would be charged without impacting your credit score. However, if you’re on dealer financing, your credit might be affected.
Cons
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Frequent payments: instead of paying monthly, you have to pay weekly. This means you’ll make frequent payments.
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Doesn’t include a car warranty: rent-to-own contracts generally don’t include car warranties. So, if you haven’t purchased a warranty outside the existing contract, you may not be protected in case the car breaks down after making payments.
Points to remember
Choosing no credit check car finance seems interesting but your job isn’t over there. You must:
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Review your contract for different terms and conditions.
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Your money and efforts go in vain if the car ends up needing a lot of repairs.
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Properly investigate the dealership you want to work with.
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Ensure that the business is legitimate.
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Ask and discuss various aspects of rent to own a contract with the dealer face-to-face.
Get the freedom to drive your vehicle
With Freedom Cars you get a chance to drive the vehicle that you love with the least terms and conditions to work through. Undoubtedly, they’ve established a name every potential Rent To Own Cars Queensland buyer could trust. No matter if you’re a bad credit history holder, unemployed, a single parent or a pensioner, there’s something for everyone. From no credit check car finance to no burden of balloon or payout figure, Freedom Cars gives you the guarantee to drive away in your car TODAY.
