If you’re in the market for a car, you may have seen some vehicle lease and rent to buy companies offering unbelievably cheap monthly prices and deals that just seem too good to be true. If you look closer at these deals, you’ll probably see some fine print that looks like this:
“Monthly mileage limitations may apply”
Just when you thought you could buy a car for less money than you spend on coffee and snacks each month, you suddenly realise that you’re only allowed to drive it around town – your kilometer or mileage limit will probably rule out any of the holidays and road trips you’ve been dreaming of.
Why do kilometre limitations exist?
Some car dealers and lease companies put a limit on the distance you can drive the vehicle you buy from them while you’re still paying it off. This is usually done for one simple reason: a vehicle with lower mileage has a higher resale value. This means that:
- If you fail to make payments and the vehicle is repossessed, the dealer will be able to re-sell the car and cover their costs.
- If you lease a car, the vehicle will be worth more at the end of the lease the less you drive it.
In other words, kilometer limitations protect the dealer or lease company and limit your freedom to drive your own car – does that sound fair to you?
Think of all the great trips you’ll be missing out on
If you’re renting to buy a vehicle, you should be able to drive it as much as you want – after all, you have paid your deposit and your monthly installments are up to date. A kilometer limitation can seriously limit the fun you have with your car because you’ll constantly be counting kilometers – in fact, it will start to feel like you’re not even driving your own vehicle.
The best kind of rent to buy agreement gives you full freedom to drive your car, as long as you meet your side of the deal by making your payments each month. Once you’ve paid off your car, you’ll be free to buy it outright and do whatever you like with it. That’s the great thing about being a car owner.
Drive your car when and where you want to
With no kilometer limitations, our rent to buy agreements are straightforward and our team is on hand to explain the entire purchase process.