So, you’ve been driving your rent-to-own car for a while, making regular payments, and now you’re only weeks or even days away from the end of your contractual period. What exactly happens at the end of a rent-to-own car contract? Do you just keep the car?

We’ll tell you everything you need to know and explain your rights and obligations.

What Happens at the End of Your Contract?

1. You Own the Car
In most rent-to-own agreements, once you’ve made all the required payments and successfully met any conditions covered in the contract, the car becomes yours. You will need to get a Roadworthy Certificate (SA excepted), and there are some small fees to cover administrative registration (duty) costs to finalise the legal transfer of the vehicle over to you.

2. There Might Be Outstanding Payments That Haven’t Been Paid
Make sure you speak with the provider of the vehicle to confirm if this applies in your situation. If there is one, you’ll need to clear the balance before you can become the legal owner of the car.

3. You Might Choose Not to Buy
While most people do go ahead and buy the car, rent-to-own gives you the flexibility to opt out. Maybe your needs have changed. Perhaps you’ve had a child since you signed the contract, and you’ll need a car with more space, or maybe you’ve got your eye on a newer model. If you don’t want to buy the car that you’re currently driving, you can return it at the end of the contract, depending on the terms you agreed to at the beginning.

Some agreements require notice if you plan to return the vehicle, and there might be some end-of-contract checks. Make sure you confirm this with your provider before the contract is due to end.

4. Transfer of Registration
Once all payments have been made, the car gets transferred into your name. This makes you the official owner, and from here, things like insurance are fully your responsibility. If it were managed by the provider, you’d need to take charge of it yourself.

Five Tips for a Smooth Transition

Reaching the end of your rent-to-own car contract is a big deal and a great step towards owning your vehicle. To make sure everything goes as smoothly as possible as you approach this milestone, follow these tips to help you prepare and avoid any last-minute stress.

1. Read Your Contract Carefully
If there’s one thing you cannot afford to skip, this is it. Your rent-to-own vehicle contract is a legally binding document that has all the important details about what happens at the end of the agreement. Make sure you know if you’ll be required to pay any outstanding fees before the car is officially yours and what you’ll need to do if you decide you don’t want to buy the vehicle you’ve been driving.

2. Stay in Touch with Your Provider
Don’t wait until the last day of your contract before speaking to the supplier of your vehicle. Reach out to them at some stage within the last few months of your term. A good provider will walk you through the next steps, let you know if there’s anything you need to do, and help with the transfer process if you choose to keep the car.

They can also offer any clarification regarding registration, insurance, and other concerns you might have.

3. Keep the Car in Good Shape
Throughout your rent-to-own period, it’s a good idea to treat the car like it’s already yours, because unless you choose not to keep it, in the end, it likely will be! Ensure you:

• Get your car serviced regularly.
• Fix any small issues before they turn into big (and expensive) problems.
• Keep the car clean, inside and out.

If your signed contract includes inspections at the end of the term, you will need to present a well-maintained car to avoid a prolonged process and financial penalties. Even if you’re planning to return the car, keeping it in good condition can help you avoid additional charges for damage.

4. Plan Ahead Financially
If your contract includes a final payment, make sure you budget for it in advance. Adequate preparation can help you avoid delays in taking ownership of the vehicle.

It’s also a good time to think about other ongoing costs, such as registration, insurance, and servicing. You’ll be responsible for organising these once the car is yours.

5. Ask About Your Options
Some people reach the end of a rent-to-own contract and decide they want something different. Maybe they’ve got their eye on a newer model, or maybe they don’t like the features in the car. That’s totally fine! Check with your provider to see what your options are.

Finishing a rent-to-own car contract is an exciting milestone. Whether you decide to keep the car or explore alternative options, you should familiarise yourself with the terms of your contract and ensure that you’ve got everything covered to avoid issues or delays.

At RentBuyIt, we support customers throughout Australia, including those in Melbourne, Brisbane, Adelaide, and the Gold Coast, helping them navigate this important milestone in their car ownership journey.

Still have questions? Speak to our friendly team, who will be more than happy to offer advice and guide you through the next steps.