Rent to Own Cars Perth

In Perth, Mandurah, Fremantle or the suburbs? Refused a car loan? Try rent to own a car instead!

No obligation. It won't affect your credit score.
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, updated on September 13th, 2023       

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If you’re in Perth or the regions such as Mandurah, Fremantle, Subiaco, Swan, or the outer regions and have been refused a car loan, you may be wondering what options are available to get hold of a car. One new concept that’s becoming popular in Western Australia and Perth is rent to own cars. Renting to own isn’t like car finance or car leasing. It gives you access to a car of your choice for a flat rental fee paid each week. You don’t have to take care of rego or insurance; it’s all included in the rent. The best part is that the rent goes toward equity in the car – which means after a couple of years, you can use the rent you’ve paid into the car to purchase the car. Hundreds of people in Perth and Australia have jumped on board rent to own as a solution when they’ve been rejected for a car loan, or only approved for bad credit car loans which can have extremely high interest rates.

How does rent to own work in Perth?

Rent to own works in the same way as a usual car rental except every payment you make builds up so you can own the car outright. You don’t have to sign any lock-in contracts and you don’t have to commit to any lease terms. Perth’s Rent to own isn’t a type of loan or lease and the upside is your rent to own provider and won’t conduct any credit checks to determine if you’re eligible. Your provider will figure out if you can afford the rent each week. They may ask for bank statements, payslips, recent bills, and a residential history. Once you have passed the eligibility check, you’ll be on the road in no time. Choose from a wide range of late models – new models are posted each week. After about two years of consistent renting, you’ll be given the option to buy the car. In many cases, you won’t have to pay any more as the rent you’ve paid is enough to purchase the vehicle outright.

What cars are available for rent to own Perth?

Rent to Own providers in Perth offer many different makes and models for you to choose from, including small hatchbacks all the way up to late model SUVs, light commercial vehicles, trucks, sedans, coupes, and high-performance cars. Rent starts as little as $80 for the earlier and smaller models. Rent is charged in proportion to the type of car and how many kms it has on the odometer – some cars are brand new; others are ex-demo or certified used. All cars are checked, refurbished, and carry a recent roadworthy certificate (RWC.) You can pick up rent to own cars all around Perth, Mandurah, Subiaco, and other regional centres like Fremantle.

What if I don’t need the car any more?

As a Perth resident, you may decide you don’t need your rent to own vehicle anymore. If so, you can hand it back at no extra cost. Remember, if you don’t keep renting the car, you will lose any money built up as part of the ownership scheme. When you are ready to buy the car, you can also upgrade your car to a new car and start the process again or continue renting until you’re ready to purchase outright. If you continue renting past the offer of ownership, you may be entitled to lower rent.

I’ve been refused a car loan. Why is rent to own different?

The main difference in rent to own is that the rental not a type of loan or a lease. This means a customer’s credit score or history isn’t a factor when deciding a customer is eligible to rent a rent to own car.

Rent to own is an option for Perth residents with no credit history or a bad credit history. Students and young adults often find it more difficult to obtain major credit such as car loans or leases as they have irregular (casual) income, are studying full-time, or are on apprenticeships. Either way, buying a car can feel out of reach for people just starting out in the workforce or tertiary education. New arrivals to Australia may also be refused credit because they have no credit history on file.

Pensioners and Centrelink recipients may also have trouble finding car lenders that will approve them.  Some banks and lenders don’t consider Centrelink payments as income.

If you have been refused a car loan and told you may be eligible for a bad credit car loan, these types of loans can charge huge amounts of interest – sometimes as high as 25%p.a. or 40%p.a. when all the fees and charges are added in as a comparison rate. Rent to own Perth does not charge interest on any payments as it is not a loan. All the fees, charges, and other costs are bundled up into one weekly rental charge.

What are my obligations for rent to own? Do I need my own insurance?

No, Perth Rent To Own customers do not need insurance, registration, and other on-road costs such as scheduled servicing are all included in the rental price. This means you won’t have to worry about looking around for insurance, CTP (NSW only), registration, and other providers. In return, you will need to keep the car in good order. Handing back the car in a soiled or dirty condition may breach the terms of the rental agreement. Since you don’t own the car until there is an offer made, you cannot modify the car’s interior or exterior. However, once you do own the car outright, you may use the car how you wish.

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