Rent to Own Cars Sydney

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.

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

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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.

How does rent to own a car work in practice?

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.

What type of cars can I choose from?

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.

I’ve been told I’m a ‘sub-prime’ or ‘bad credit’ customer. What should I choose, the loan or rent to own?

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.

Why are people refused for car loans in Sydney?

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.

How do I get a rent to own car in Sydney?

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.

Why choose Savvy

Answering Sydney’s questions about rent to own cars

What kind of cars can I rent?

All types are available including hatches, sedans, wagons, SUVs, 4x4s, vans, and light commercial vehicles. Many of the models are late certified used models with a roadworthy certificate.

I’ve been rejected for credit, can I get a rent to own car?

Yes. Rent to own is perfect for people who have a bad or spotty credit history as there are no credit checks involved. We figure out if you’re suitable based on your current financial situation.

How much is the rent?

Rent can vary between model and condition, but rent starts from about $80 per week and tops out around $200 per week.

What are the conditions and costs?

When you are renting, you must keep the car in good condition, e.g. no messy or soiled interiors, avoidable scratches, etc. The only costs you incur are for fuel. Registration, insurance, and scheduled servicing is covered by your rent.

How do I check my credit score?

You can check your score for free through one of Australia’s credit reporting bureaus. Click here for more information.

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