In Sydney or the regions? Looking for a car but refused a loan? Rent to own might be your way behind a set of wheels.
Fact checked
Rent to Own cars are a great alternative for people with bad credit or have trouble gaining car loan approval due to their situation to own their own vehicle. Rent to own does not involve credit checks and is not a type of loan. Unlike traditional car rental, each rental payment you make helps you move closer to owning the car outright. Rent to own has dozens of models coming on to the rental lot and are available for delivery or pick-up in Sydney, Wollongong, Newcastle, and the greater Sydney suburbs.
Rent to own works by selecting a car from the pool of cars on offer, paying a security deposit, and paying rent each week. You can cancel the rental at any time if you decide you no longer need the car. After two years, you will be eligible to buy the car. The funds spent on your rent go towards the purchase of the car. In most cases, you may not have to spend any additional money to buy the car, though some conditions may apply.
At the end of the two-year period (though this can vary) you can choose to buy, hand the car back, upgrade to a new car, or continue renting as per normal. Since you are renting and ownership is still with the provider, you will not have to pay for registration, insurance, scheduled servicing, and other on-road costs. You will still be responsible for fuel and keeping the interior neat and tidy.
All types of cars are available from rent to own which include family sedans, hatchbacks, people movers, high-performance cars, light commercial vehicles such as vans, 4x4s, and SUVs. These range from new cars, ex-demos, and certified used vehicles. Most cars are late model vehicles that have their
Roadworthy Certificate (RWC) and have been cleaned and serviced. Some smaller cars may be available to rent for as little as $80, while higher performance or later models can push upward of $200. There are many different cars available from a variety of locations such as Bankstown, Cabramatta, Penrith, Manly, and the regions in Illawarra, Newcastle, and Wollongong.
A bad credit customer may have an impaired credit history due to defaults or higher than average credit applications. A credit history shows your credit activity for seven years; even if you have made efforts to have good financial standing in that time, the history itself holds you back from approval or mainstream car loans. A bad credit customer can expect car loan interest rates as high as 24%p.a. (which is higher than some credit cards) with comparison rates, which is the interest rate and most fees and charges paid on top, as high as 40%p.a. You may also face restrictions on what type of cars you can buy, which is up to the lender or bank. In the worst case, you may be refused for a loan outright, which is also recorded against your credit history.
A rent to own option doesn’t check your credit in the same way as a loan. Rent to own sees if you can afford to pay the rent right now and into the future, using current information. Rent to own is an easy and flexible alternative to car loans; you cannot “change” cars mid-way through a car loan if you need to, for example. Rent to own is not a loan either as you are paying rent and not repaying a loan with interest.
People are refused for car loans due to having low creditworthiness. Creditworthiness is the way banks and lenders decide on whether someone is a good fit for a loan. Banks and loans conduct checks into customer credit history to figure this out in the first place. Your credit history is a document that shows banks when you’ve applied for credit, the amount, and as of 2018, information on your credit cards such as if you’re near the limit, the amount you pay each month or have been refused limit increases. Credit histories also record defaults; if you have defaults, this lowers your creditworthiness. Other reasons may include being young and having no credit history; a new arrival to Australia; being self-employed; getting Centrelink payments or pensions, or being an ex-bankrupt.
If you’re in Sydney or the suburbs such as Newcastle, Illawarra, Penrith, or Wollongong, you can apply direct for rent to own cars online. We don’t check your credit history, but we will need information about your finances to see if you can afford the weekly rent. You’ll also need to put down a security deposit to begin the rental. Students, pensioners, self-employed, bad credit customers, and new arrivals can apply for a rent to own car. It’s a tried and true pathway to car ownership over time without trying to apply for a car loan.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
