How does it work?
Rent-to-buy car subscriptions have drastically changed the traditional car buying experience, making it simpler than ever for buyers to get their hands on a new set of wheels.
This revolutionary model eliminates the high initial cost of buying a car, as well as the long waiting process that securing credit adds.
What’s more, no credit score is required – all you need is an affordable monthly subscription fee and you can drive off in a variety of models. Renting to buy has opened up the possibility of owning too many who previously couldn’t afford or access it, transforming how individuals view and procure their cars.
You can apply today
It is effectively renting a car with the ultimate goal of eventually owning it. Renters are charged a monthly fee and have access to the car as long as they pay this fee, usually up to an allotted monthly mileage. While there’s no legal obligation to finalize the purchase of the vehicle at the end of the rental term if circumstances don’t change then a pre-determined price will be agreed upon for purchase.
This represents a subscription model for owning cars, making it much more cost-effective than buying due to typical warranties covering any repairs that may be needed during this period.
The benefits of rent-to-buy
Rent-to-buy offers a unique model :
Convenience: This is an innovative solution to the challenge of convenience. Rather than committing to buying a car outright, or making a long-term leasing contract, rent-to-buy agreements instead provide flexible terms that let you choose the desired car – along with a set term and agreed rate – making it easier to achieve your transport objectives.
Affordability: Renting a car can be an excellent option for those on a budget, as the monthly payments are usually significantly lower than those associated with a car loan. Not only does this mean that you don’t need to pay up-front for the entire purchase price, but you also benefit from the fact that depreciation has already been accounted for in the cost of your rental package. Rent-to-buy solutions are becoming increasingly popular with drivers of all budgets, making cruiser cars more affordable and accessible than ever before.
Rent-to-buy programs provide South Africans with a secure and convenient way of acquiring a vehicle. The ownership of the vehicle is retained by the dealer or intermediary, meaning no credit checks need to be conducted on applicants. Rent to buy offers an accessible solution for those without access to other forms of financing, giving them the ability to drive away in their desired car when they may not have been able to do so otherwise.
The pros and cons of rent to buy
Rent-to-buy vehicle arrangements offer numerous advantages. With low monthly fees, consumers can drive away in a new or pre-owned car that is still under the manufacturer’s warranty. At the end of the contract, buyers can choose to purchase the vehicle at a reduced price or lease a new bakkie, luxury sedan, or SUV for an additional rental term. Even hand back the vehicle to the dealer or creditor without extra difficulty. Therefore, The pros of a rent-to-buy vehicle arrangements heavily outweigh its one con – not reducing the end purchase price of the car; but rather having charges for the use of it.
Key Takeaway
Rent-to-buy car subscriptions offer a simplified and accessible way to own a vehicle without the need for a high upfront cost or a good credit score. With affordable monthly subscription fees and flexibility in terms, this model is transforming how people acquire and view car ownership. It provides convenience, affordability, and a secure option for those without access to traditional financing, making it a viable choice for various budgets and needs. While it may not reduce the car’s final purchase price, the benefits far outweigh this single drawback.