Do you do Credit Checks? – Proper Assessments Explained.

Rent Buy It Logo
View All Cars
1300 591 811

Do You do Credit Checks? What are the rules for Rent to Own?

Why True Rent-to-Own in Australia Requires Proper Assessments – ASIC & ACL Explained

In Australia’s growing rent-to-own car market, many providers promise “no credit checks” and “instant approvals.” While quick access to a vehicle sounds appealing, especially for those with past credit challenges, true rent-to-own arrangements must comply with strict regulatory standards designed to protect consumers. At RentBuyIt.com.au, we believe transparency and responsible practices are the foundation of genuine ownership pathways.
 

What Makes Rent-to-Own a Credit Activity?

Rent-to-own (also known as rent-to-buy) agreements for vehicles often function as consumer leases or credit contracts. These fall under the National Consumer Credit Protection Act 2009 (National Credit Act), regulated by the Australian Securities and Investments Commission (ASIC). If a provider offers a structured path to ownership through regular payments, they are typically engaging in credit activities. This requires them to hold (or act under) an Australian Credit Licence (ACL) and meet responsible lending obligations.

RentBuyIt operates under Australian Credit Licence 428926. This licence ensures we follow the law and put your long-term financial wellbeing first.

Responsible Lending Obligations: Not Optional, But Essential

ASIC’s responsible lending rules (outlined in Chapter 3 of the National Credit Act and Regulatory Guide 209) require licensed providers to:

  • Make reasonable inquiries about your financial situation, income, expenses, and objectives.
  • Take reasonable steps to verify that information (e.g., recent bank statements and payslips).
  • Assess whether the agreement is “not unsuitable” for you — meaning the payments should be affordable without causing substantial hardship.
     

These steps are not barriers to approval. They are safeguards ensuring the vehicle you drive today doesn’t create financial stress tomorrow. From 12 June 2023, additional protections apply to consumer leases, including bank statement reviews (last 90 days) and limits on payments relative to income.

At RentBuyIt, we perform these assessments responsibly. We focus on your current ability to manage weekly payments comfortably, not just a historical credit score. This approach helps more people achieve sustainable ownership.