Rent-to-own is an accessible way for people who need a vehicle but have been rejected for a car loan. They offer flexibility and the chance to own a car at the end of the rental period. But what happens if your circumstances change and you can’t afford to make the agreed payments?

At RentBuyIt, we understand that things don’t always go to plan. Whether it’s an unexpected bill, a job loss, or a family emergency, missing a payment can keep you awake at night, tossing and turning. In this post, we’ll explain what usually happens if you miss a payment on a rent-to-own car and how you can get back on track.

Understanding How Rent-to-Own Works

Before we talk about what happens if you miss a payment, it’s important to understand how a rent-to-own programme works. When you rent a car through this scheme, you’re essentially making regular payments over an agreed time scale. If you stick with the agreement and make all your payments, you’ll eventually own the car at the end of the contractual term.

But until you complete all payments, the car remains the property of the rental provider.

What Happens if You Miss a Payment?

Missing a payment doesn’t automatically mean your car will be taken away. Here’s what typically happens:

a. Grace Periods and Contact from the Provider
Many rent-to-own companies, including RentBuyIt, understand that times can get tough when you least expect them. You may be able to make your payment at a slightly later date without incurring a penalty. If your payment is overdue, you’ll likely be contacted by the provider. This might be through a phone call, text message, or email. The aim isn’t to scare or threaten you; it’s to understand what’s happened and help find a solution.

b. Late Fees
If you don’t make a payment within the grace period or speak to the car provider, a late fee might be applied to your account. These fees can vary depending on your rent-to-own vehicle contract, so it’s always good to read the fine print or ask for clarification when you start the agreement.

c. Risk of Repossession
If you fail to make a payment and you don’t respond to communication from the provider, they have the right to take the car back. However, this is usually a last resort and doesn’t happen overnight. Most providers would rather work with you than go through a lengthy and costly repossession process.

What Should You Do if You Can’t Pay?

If you know you won’t be able to make an upcoming payment, you should speak to your provider as soon as possible. Don’t wait until you’ve missed several payments. Many providers (like us at RentBuyIt) are happy to work out a temporary solution, such as:

• A short pause in payments.
• The chance to make more affordable payments for a short period of time.
• Extending your contract so you can catch up later.

By being transparent with your provider, they’ll be more likely to recognise your commitment to adhering to your end of the deal and open to offering you the help and support you need.

4. Can You Return the Car?
Yes, in many rent-to-own agreements, you have the option to voluntarily return the car if you no longer want it or can’t afford it.

Returning the car may end your contract, but you might still be responsible for any overdue payments or damage to the vehicle. Always check with your provider before choosing to return the car.

Will It Affect Your Credit Score?

Rent-to-own payments aren’t always reported to credit bureaus; however, your provider might choose to do this if you fail to make payments promptly or a debt collector must get involved. In order to avoid this course of action, it is essential for you to communicate with your provider promptly and regularly.

Missing a payment on a rent-to-own car can be stressful, but it doesn’t have to signal the end. At RentBuyIt, we believe in working with our customers, not against them. If you’re ever worried about a payment, please reach out. We’ll do our best to help you keep your car, if that’s what you want. We support customers across Australia, including those in Melbourne, Brisbane, Adelaide, and the Gold Coast.

Need help or have questions about your payment? Talk to us today.