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But buyers with bad credit or no credit history may consider another alternative: rent-to-own car programs.
Rent-to-own car agreements allow you to rent the vehicle for the long term, often one to three years.
Rent payments go toward the eventual purchase of the car.
How Do Rent-to-Own Cars Work?
Rent-to-own car agreements are typically offered by buy here, pay here used auto dealerships.
There is nofinancing company, so the dealer can be more flexible.
When you sign a rent-to-own agreement, you make payments to the dealer who owns the car.
If you decide to keep the car, continue making on-time payments.
Once youve paid for the vehicle in full, the dealer transfers the title to your name.
Rent-to-Own vs. To find a reliable dealer, run with this.
Step 1.
Research Local Dealerships and Online Sites
Many local used car dealers offer rent-to-own programs for buyers with poor credit.
Some dealers, likeEZCreditCar.com, even offer warranties.
For instance, EZCreditCar.coms program puts your entire payment toward the purchase.
Step 2.
Ask questions in local Facebook groups about a dealers reputation and service.
Step 3.
Understand the Contract Terms
With rent-to-own arrangements, missing one payment could mean vehicle repossession.
ensure you understand the following:
Step 3.
Purchasing a car using traditional financing gives you more leeway to negotiate the purchase price.
Step 4.
Inspect the Vehicle Before Signing Any Agreement
Many rent-to-own cars do not come with a warranty.
If you’ve got the option to, have a mechanic you trust inspect the vehicle before purchase.
Who Should Consider Rent-to-Own Cars?
Who Should Skip Rent-to-Own Cars?
A rent-to-own agreement is probably not the right choice for most people who qualify for traditional financing.
Rent-to-own vehicles are typically limited to whatever used cars the dealer has available on the lot.
Alternatives To Rent-to-Own Cars
Rent-to-own is just one solution to getting a car quickly.
There are other alternatives to consider.
On-time payments may not helpbuild your creditand interest rates could be much higher than a traditional auto loan.
Credit-Building Auto Loans
Some lenders specialize in auto loans for consumers with low credit scores.
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