3 Things You Need To Know About Renting A Vehicle To Own

When looking for a pre owned fords for sale, one of your options is to rent a vehicle with the purpose of eventually owning a vehicle. This is another way to gain ownership of a vehicle instead of getting a traditional auto loan.

No Credit Check Required

One of the big benefits of a rent-to-own set-up is that no credit check is required. This makes it a lot easier to qualify to rent a vehicle. If you know you have a poor or low credit score, this can be really helpful. When you have a poor or low credit score, it can be difficult to secure a loan with a fair interest rate and some dealerships are just not interested in working with someone who has a poor credit score.

With rent-to-own programs, you don't have to worry about having a low credit score. If you are trying to build your credit, you also don't have to worry about a hit to your credit score bringing things down even more.

A Down Payment Is Necessary

Generally, you have to make a down payment on a vehicle when you are leasing to own the vehicle. The amount of the down payment can vary, but is generally less than the 20% that most auto loans ask you to contribute.

No Interest Is Charged

With lease-to-own agreements, you are not charged any interest. This is because the overall purchase price of the vehicle is generally above market rate. This is how the dealership makes money on the deal. You'll know the total price that you'll pay for the vehicle when you sign the agreement.

Payments Occur on a Weekly Basis

With a traditional car loan, you make payments on a monthly basis. With a lease-to-own program, you make payments on a weekly basis instead. The payments usually don't exceed a hundred dollars a month, and could be less. The total amount that you pay per month is very similar to the amount you would pay with a traditional auto loan, the payments are just broken up into smaller chunks.

Payments Are Automated

With lease-to-own programs, you are usually required to set-up a direct automatic payment. This helps ensure that you make your weekly payments on time. If you get behind on your weekly payments, you'll have to pay a late fee, which can be on the larger side. If you get to far behind, the dealership will take the car back from you.

With a lease to own program, the listed price is what you will end up paying for the vehicle, with no additional interest charged. You will have to put down a down-payment, and make weekly automated payments until the car is paid off.

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