Buying a car is one of those complicated purchases that affects your personal, professional as well as financial wellbeing over the long term. Financing your car is a long term obligation to the bank regardless of the unforeseen circumstances or trends in the economy that may render you unable to make your car payments, effectively ruining your credit score.
When it comes down to it, you still need a car to get you to where you need to be. With this in mind, perhaps you should you consider a rent to buy . car instead?
There’s no need to apply for financing from your bank
The hassle of applying for a bank loan aside, rent to buy means that you don’t have to concern yourself with the addition of interest to your monthly car payment. Your payments are fixed for a period, usually 54 months.
It won’t affect your credit rating
Rent to buy runs no risk to your credit score which means that a bad credit score won’t prevent you from leasing a car and a good credit score won’t be impacted. Your credit rating only allows you to accumulate a limited amount of debt. Buying something like a car will use up a sizeable portion of this limited debt. Keeping your credit score clear is important for things like home and business loans.
You won’t get stuck with the same car for years
Paying off a car takes ages, leaving you fixed to your purchase for years despite the daily devaluation of your car as you drive it. With rent to buy, you’re given the option to upgrade your vehicle every 18 months, affording you more freedom in terms of what you drive and how long you drive it for.
Your car is guaranteed by the manufacturer
With rent to buy cars, there’s no need to worry about costly repairs in the event of a mechanical breakdown as all vehicles are covered for not only mechanical failure but also come with roadside assistance.
You’re free to terminate your contract at any point
Buying a car means you’re bound to it and the financial obligations that come with paying it off. Renting your cars puts you in the convenient position of being able to terminate your contract in the event that you are no longer able to afford the monthly payments or are simply no longer in need of a car.