What is rent to own cars? It is an idea to rent your own car and it will be yours when last payment cleared. Here we tell you the advantages and disadvantages of having these kind of cars. The rent-to-own program has become common in many states like Louisiana, San Diego, Florida, Houston, California, and among others. It usually brings benefits for people with very little budget but wish to own a car, people with bad credit car loans, bad financial record, as well as some people that need a car but would like to try it out before buying it.

Advantages

It is basically an idea of walking into some car dealer with the “rent to own” program, choose your desire car, put a down payment and start pay the monthly rental to the car every month in the future. The car will be fully own by you when the last payment was made. Isn’t this a great idea?

It helps people with bad credit history. Some “rent to own” dealer provides no-credit-check where anyone with bad credit or bankruptcy can stand a chance to own a car by paying monthly car rental. What you need to provide is the proof of your ID, proof of residence, proof of income, and some down payment.

Other than that, it is good for first time buyers especially teenager who just passed 18 years old and wanted to buy their first car. Rent to own cars is a good choice for first time buyer as there is no credit history require, repossessions, or even a credit card is not needed.

In addition, the programs will save you some personal property taxes at the same time you stand a chance to own some real nice car with minimum down payment and less monthly payment.

Disadvantages

The beautiful Idioms say “No rose without a thorn”. Rent-to-own is no doubt a good idea for consumers especially who may rent a car to fill a temporary need or try out the car before buying it. However, there are still some disadvantages and problems with this program.

One of the major issues is consumer protection issues. The biggest concern has included the car price charged by a dealer. Sometimes the car price can be sky high. Try to research the market price for a car you want to buy and compare with the price offer by rent-to-own program from any car dealer in your town.

Besides, the treatment of customers to the car during the collection of overdue rental payments is also a concern whether it affect the car condition. Other than that, look carefully when you sign the agreement. It is often that the adequacy of information provided about the terms and conditions of the rental agreement and purchase option is a concern.

In conclusion, rent-to-own car are not the lowest cost method of buying a car. Consumer with enough cash or willingness to wait until the cash purchase can be saved will likely be able to get any cars elsewhere at lower cost rather than rent to own cars.