There are many ways in which bad credit can affect your life. You may be turned down for an apartment, credit card or even a car loan. This makes acquiring things that you may need, in order to maintain a comfortable and manageable lifestyle, quite difficult. For instance, you may need to have a reliable means of transportation in order to maintain employment.
For a lot of people, that means of transportation is their own vehicle. However, with bad credit you may be denied a sufficient loan to purchase a reliable vehicle. This is why a rent to own cars may be a solution for your car loan needs.
Rent to own cars are vehicles that are offered in a program, where a purchasing agreement allows a buyer to put a down payment on a vehicle, with an agreement to make scheduled payments afterwards. All or some of these payments are applied to the ownership of the vehicle while you are using the vehicle.
So at the end of the rental agreement, instead of returning the vehicle to the agency, you will now own the car. So this is a simple and easy option that makes car ownership possible even for those who may have poor or bad credit or for those who wish to simply try a vehicle before committing to buying it.
With rent to own cars, a down payment will be required, along with additional payments which are usually paid on a weekly basis. In addition, you may need to show proof of identification, proof of residence and proof of income. However, many companies do not require proof of income, just proof of residence. These are all things which need to be discussed and negotiated with your car dealer.
The great thing is rent to own cars offer more negotiable terms than other forms of financing or leasing. In fact, a lot of the scheduled payments are used towards the ownership of the vehicle which is unlike financing or leasing where some or none of the payments go towards ownership, but rather go towards paying interest or other charges.