If you are looking for a way to access a vehicle long term, it’s likely you are familiar with leasing, renting or financing a car. All of these options have different pros and cons. However, they tend to only be available to those with a good credit score and/or a substantial deposit.

So what is a person with no credit history or a poor credit score to do? There is one lesser-known route to car ownership available to these individuals. The Rent and Buy model, also known as rent-to-buy or rent-to-own, is rising in popularity.

In this blog, we will discuss the drawbacks of traditional car finance and what it’s like to pursue car ownership via the Rent and Buy model.

Why Traditional Car Finance is Failing Many Australians

When it comes to traditional car finance, this flawed approach to car ownership is failing many Australians. Due to high fees, rapid car depreciation and balloon payments exceeding the car’s value, half of borrowers default within six months.

Traditional car financing is causing the following issues:

• Unsustainable Debt: Due to rising interest rates and inflation, many Australians are in debt over cars they can’t afford.
• Poor Affordability Assessments: Lenders are not checking if borrowers can afford payments properly.
• Depreciation Outpacing Payments: New cars quickly lose value, meaning owners are often paying more than the car’s market value.
• Lack of Flexibility: Long-term rigid contracts of 5-7 years trap owners in older vehicles.
• “Balloon Payment” Traps: Many loans include a big final payment, forcing borrowers to pay a lump sum, refinance or sell the car.

Defining the ‘Rent and Buy’ Model for a New Audience

With RentBuyIt, the Rent and Buy model offers a new way to spread the cost of a car while still working towards car ownership, unlike leasing or long-term rental. It requires just a small upfront deposit and regular fixed weekly payments over a period of five years through a rent-to-own vehicle contract. Once this contract is complete, you own the car outright.

The low deposit makes it accessible to those with low levels of savings.

The Key Milestones on Your Journey to Ownership

If you choose to Rent and Buy a vehicle with RentBuyIt, you will go through the following steps to achieve car ownership:

• Choose Your Car: Check out our extensive range of both brand-new and near-new pre-owned vehicles to find a car or SUV that suits your budget or lifestyle via RentBuyIt.com.au.
• Enquire & Apply online: Choose your vehicle and submit an enquiry. You’ll receive an instantaneous email response with pricing and packaging for your desired vehicle, along with a link to apply online within the same email. Our friendly customer service advisors will guide you through the contract and financial checks.
• Pay the Deposit: Once your application has been approved, you pay your deposit, which can be as low as $199.
• Drive Away: In some cases, you can drive home the vehicle the same day. There are no limits on mileage.
• Pay Weekly: Pay regular fixed fees for the contract length. You can also pay more to reduce the length of time you are within the contract.
• End of Contract and Ownership: Once your contract is completed, attain a Roadworthy Certificate (SA excluded), just pay the duties to the Road Authority and gain ownership of the car. With RentBuyIt, there are no balloon payments or residual payments, just true ownership at the end of the term.

How to Get Started with Your ‘Rent and Buy’ Application

To get started with a Rent and Buy application with RentBuyIt, simply start by browsing our website or in-store at our Melbourne, Brisbane or Adelaide showrooms to find a car that suits your budget and lifestyle. Once you have found your perfect vehicle, our friendly team will guide you through the contract and help with bad credit car finance options if needed.

To get started, talk to a customer service advisor, call us on 1300 591 811 or visit our Enquire Now page on our website for more information.