If you’re in the market for a car but you’ve been refused a loan or you don’t have the money for it, rent-to-own is a solution that many Melbournians have taken advantage of. It’s a flexible and affordable way to get behind the wheel. But how does it work? And what should you know about the process? Let us explain.

What is a Rent-to-Own Car?

A rent-to-own car is exactly what it sounds like. You rent the car with the view of owning it when your contract comes to an end.

You typically pay a weekly or fortnightly fee, which includes your car rental and, in many cases, basic maintenance, registration, and insurance costs. After an agreed period, you either own the car outright or have the option to make a final payment to secure it as your property.

Who Can Benefit from a Rent-to-Own Programme?

Rent-to-own cars are perfect for people who:

• Have been knocked back for car finance due to poor or no credit history.
• Are new to Australia and can’t apply for a loan yet.
• Can’t afford a large deposit.
• Need a car quickly for work or family commitments.

At RentBuyIt, we offer convenient plans to suit everyone, including specialised bad credit car finance options for those who have struggled with traditional lenders.

What Are the Pros and Cons?

Let’s begin with the pros. There are some big advantages to signing a rent-to-own agreement:

1. Basic Credit Checks Only: Most rent-to-own providers don’t require you to have a strong credit history. This can make it easy for you to get onto the programme even if you don’t have a particularly glowing credit score.

2. Low Upfront Costs: You usually only need to pay a small upfront fee, making it easier to get started and on the road.

3. One Simple Payment: Your regular payments often include insurance, servicing, and roadside assistance costs, so you won’t have any unpleasant surprises at the end of your contract.

4. Path to Ownership: Unlike leasing, which is just renting long-term, you’ll actually own the car in the end.

While it’s undeniable that rent-to-own has proven to be a great option for many people in Melbourne, it’s important to be aware of the downsides too:

1. The Total Cost Can Be Higher: Because you’re spreading out payments, the total cost over the term might be more expensive than it would be if you were to buy the car in a single payment. But for many who need a quick solution, the trade-off is worth it.

2. Make Sure It’s Transparent: Check that all fees and terms are clearly outlined in your rent-to-own vehicle contract. At RentBuyIt, we’re all about clear, honest communication, no hidden fees, and no fine print to catch you out!

3. Responsibility Still Counts: You’re still responsible for looking after the car and making payments on time. If you fail to pay up and let your provider know if you’re struggling to stick to your end of the deal, you could lose the car and the money you’ve already put in.

Why Choose RentBuyIt?

We’ve helped hundreds of people throughout Melbourne drive away in vehicles they love, without a long and stressful approval process. Here’s what sets us apart:

• Flexible plans that suit your income and budget.
• Fast approvals so you could be driving off in a lovely new or used car within just a few days.
• Wide range of vehicles to choose from, including SUVs, Utes, hatchbacks, and more.
• Friendly support from a local team who will support you every step of the way.

If you’re in Melbourne and want a car you can call your own, explore the RentBuyIt range today. We also provide long-term car hire in Melbourne for those who need flexible vehicle solutions.