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What Are Rent-to-Own Cars?

Have you seen those commercials with Hulk Hogan and Troy Aikman telling the world what a great deal rent-to-own financing is? According to the Hogan-Aikman tag team, renting to own is a great way to pick up sofas, playstations, televisions, refrigerators and other household goods.   

Well, you can also buy a car using the rent-to-own avenue. And, just as Hogan’s and Aikman’s rent-to-own transactions do not require a credit check, income verification, or cosigner, neither does buying a rent-to-own car. However, there lies the rub. Since rent-to-own financing does not have the same screening criteria that traditional loans do, they have a higher rate of default, which means that those that do make the payments are paying a much higher interest rate than they would with normal auto financing.

One other way that rent-to-own differs from other car loans is that when you are renting to own, you can return the car to the dealer if you would like. Though, often times you’ll have to pay a return charge if you do this.

If you would like to finance a car purchase, you need to first try traditional auto financing such as what we offer – you apply online here. But, if this is not possible for you, for whatever reason, getting a rent-to-own car may be the way to go. If you do buy a rent-to-own car, just make sure you read the entire rent-to-own contract before signing it so.

About the Author

The author has many years of experience in automotive finance and insurance. However, each consumer's situation is unique. It is best to contact a finance specialist for further assistance.
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