If you have a poor credit score or can’t afford to shell out the cash necessary right now to buy a car, then your best bet is to look for rent-to-buy options. Rent-to-buy vehicles allow you to secure a ride without needing to go to the bank for a loan and spend a lot of money upfront. If you have a poor credit score or no credit score, you might not get the best car loan, which means you’ll pay a higher interest rate. This makes rent-to-own deals look like the better option.
What is Rent-To-Own?
Rent-to-buy deals allow you to buy a car by paying for it monthly until you can buy it entirely. One of the benefits of a rent-to-buy car is that you can get one without a credit check; all you need to show is proof of identity, residence, and income. Payments are typically made weekly or monthly to the car dealership, with no interest costs. You’ll need to make a deposit. After paying monthly or weekly sums for a period of time, the car will become yours! This makes it the perfect option for someone who needs a car but can’t afford to buy it upfront or has a poor credit score.
What is a poor credit score?
A poor credit score is a score that falls below the creditworthiness threshold set by most major lenders. This threshold is typically 620, although it can vary depending on the type of lender and the type of loan. A poor credit score can make it difficult to rent an apartment, buy a car, or obtain a mortgage. It can also lead to higher interest rates and insurance premiums. There are several ways to improve a poor credit score, including paying bills on time, maintaining a good credit history, and using a credit monitoring service. But we at Planet42 allow everyone to apply for our rent-to-own service.
How is Rent-To-Own Different from Leasing?
Rent-to-own is quite similar to leasing except that at the end of the renting period, a portion of your payment will go towards buying out the car in full. With leasing you’ll most likely be taking a loan out from a credit provider. If you have bad credit, then chances are you won’t get a sweet deal on monthly payments for leasing, or worst-case scenario, you won’t get any deal at all. Leasing can be an economical option for someone who wants to switch cars every couple of years; however, it still requires a good credit score.
Rent-to-own, on the other hand, will give you the chance to eventually own a car outright. If you make all your rent-to-own payments on time, your credit score will gradually improve.
Of course, before you sign any contract, it’s important to do your research and make sure you understand all the terms and conditions. Be sure to read over the contract carefully and ask any questions that you may have. Once you’ve done your homework, rent-to-own cars can be a great way to get behind the wheel without breaking the bank.
Car rental or rent-to-own?
There are pros and cons to both rent-to-own and car rental agreements.
With a rent-to-own agreement, you may have the opportunity to buy the car after a while. This can be beneficial if you’re planning on staying in the same area for a long time. As mentioned before, rent-to-own doesn’t need a good credit score for you to apply.
Car rentals, on the other hand, offer flexibility and can be cheaper in the short term. However, you’ll never own the vehicle and will always be subject to mileage limits and other restrictions. You may not even receive a car rental due to a poor credit score
Ultimately, the best option for poor credit score would be rent-to-own.
Benefits of Rent to Own
There are plenty of benefits that come with rent-to-own cars.
- You don’t need to have a superb credit score to qualify for a rent-to-own vehicle since the approval rates are higher. This makes qualifying for a rent-to-own vehicle easier than qualifying for a bank loan.
- You get to own your vehicle at the end of the rental term, provided that you’ve made all of the necessary payments and bought the car at the end of the rental period. If you wish, you can also buy the car during your rental period.
- There are no interest rates. You only pay for the total price of the vehicle in monthly or weekly payments. It’s important to remember that late payments incur extra fees.
- In addition, rent-to-buy cars often come with lower monthly payments than traditional financing plans.
Ultimately, rent-to-own cars offer a convenient and affordable way to get behind the wheel.
How can I sign up for rent-to-own cars?
At Planet42, we strive to make securing a car as affordable as possible. We know that getting a car for an affordable price can be challenging. Because of this, we’ve partnered with over 600 car dealerships selling new and pre-owned vehicles across South Africa and provide rent-to-own deals to South African individuals. All you need to do is find a suitable car for you from one of our dealers and fill in an application indicating your name, income, ID number, and contact details. We will review your application in one minute and then, if you are successful, will buy the car from the dealer and rent it out to you. You can become the owner of the car by purchasing the vehicle from us at any point during your rental period or for R5000 after renting with us for 60 months or more.
Where can you find cheap rent to own cars?
We have partnered with many car dealers all across South Africa. These dealers offer budget-friendly rent-to-own cars, and plenty of options are available for any need, taste or style. Below are a few dealers that we work with that sell budget-friendly rent-to-own vehicles in South Africa.
- Optimal Auto in Boksburg offers a good selection of budget-friendly vehicles.
- Auto Deal in Brakpan
- Willow Crest Motors in Randburg
- City Wheels in Pretoria
- CMH Ballito in Durban
- BNA Motors in Cape town, which offers fantastic prices and a large variety of affordable vehicles.
- And many many more!
If you’re looking for a rent-to-own car and are unsure where to start, get in touch with Planet42. We will help you find the best rent-to-own deal on a budget car that is perfect for your needs. We will be glad to help those in need of a car.
How much can I afford to spend on a rent-to-own car?
At Planet42 we are all about helping people get into the car of their dreams. We understand that sometimes traditional financing options aren’t available or desirable, which is why we offer rent-to-own cars. But we also want to make sure that our customers are making responsible choices.
There are many more options out there. Getting in touch with Planet42 will help you figure out which vehicle is best for you. By submitting an application, you’ll be notified of the price range available to you. You’ll then be able to search on the websites of the car dealers partnered with Planet42 and narrow down your car search even more. You can think about what kind of a vehicle you might need, which features are important to you, and how much you can afford to spend on running costs like fuel, maintenance costs (these depend on the age of the vehicle, how much it has been used before and what you use it for now. For example, if you frequently drive in the city, then maintenance costs may be lower. Conversely, if you often drive on dirt roads then these costs may be higher), insurance costs, and of course the monthly payment amounts.
Most experts recommend that you spend no more than 20% of your annual income on car-related expenses. This includes not just your monthly rent-to-own payments, but also things like gas, insurance, and maintenance. Narrowing down your search to cars that fit within this budget will help you avoid getting in over your head.
At Planet42 we want to work with you to find a car that fits both your needs and your budget. Get in touch with us today and let’s find the perfect rent-to-own car for you!
Is Rent-To-Own safe?
Here at Planet42, we believe that rent-to-own is a great way to get the car you need without having to worry about a long-term commitment. With rent-to-own, you can rent a car for a short period of time and then return it at the end of the lease or buy it out. Plus, our monthly rent-to-own subscription is completely safe and secure, so you can rest assured that your car will be in good hands. So if you’re looking for a great way to get behind the wheel without breaking the bank, come to Planet42 or call us and check out our rent-to-own program today.