whats wrong with rent-to-own cars?

Question

My credit is flimsy and I now work part-time, so the car search has not been easy.

Now, I'm thinking of getting getting a rent to own car . should I?

Can u tell me why u recommend it or warn against it?

So far a $500-$1500 deposit for a decent looking car plus $300-$400/mo sounds reasonable to someone who is having NO luck, has less than $1500 and is in desperate need for a ride!

Plus Im sure that once I get a car I can go back working full time and can get so much more accomplished.
I think rent to own is my only option...

Do you think it is wise? Why? Why not? Thank u sooo much.

thank u all for these responses, Im still reading them but I want to add that I only WISH I had such luck at a dealership. My credit was ruined as a teenager by myself(poor management of credit cards) and
by frauds and no matter where I go Im never accepted. Plus I dont have much cash to go and by anything over 1500 dollars.

Answer 1

Tread very carefullly and read the agreement thoroughly!

The rent-to-own scam , sorry, scheme, is full of potholes meant to separate you from your money.

First off, the "down payment" comes very close to the dealer's investment in the car. If you skipped town after making only a couple of payments, he'd still show a profit. Whatever you buy this way, you WILL grossly overpay for it!

$400.00 a month will buy a LOT of car if you can get conventional financing, even at a high rate.

Many of the agreements cancel the "to own" feature if even a single payment is one day late. Of course you won't be reminded of that fact until you go to collect your title. You'd have to start fresh with a new down payment and another 2 years worth of payments to get the title.

Many of the firms that run this scam -- sorry, I meant to say scheme, guess there's a Freudian block there -- install an immobilizer in the car that will disable the car if you're more than a couple of days late with a payment. It won't just quit in the middle of the highway, but when you shut it off, it will not re-start. You'll have to get it towed back to the scammer -- sorry, the dealer -- to get it re-enabled.

Unless you live way out in the sticks, you may discover that even taking a taxi everywhere will be cheaper in the long run once you add insurance, fuel, maintenance and the like on top of that $400.00 a month "rent" payment.

If you have $1,500 in cash available, you might be able to get something serviceable if you shop around carefully. It won't be anything fancy to be sure, but it sure beats those payments while you're getting back on your feet! Shop carefully and bring along a friend who knows cars and can help you avoid the worst of the lemons.

Answer 2

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Answer 3

Rent To Own Cars

Answer 4

This is can go either way. Some rent to own cars have been flooded out and have major problems with them. The dealerships buy these cars at auctions or repos. However, there are a few rent to own companies that have good cars w/ reasonable payments. I dont know what state you are from, however there are some used car dealerships that will work with you if you have not so stable credit and help you with a down payment. I know someone who has bad credit and put down a $300 deposit for a 2001 Toyota Camry (with 25,000) miles and it had no problems with it. So just do your research. Visit websites and call around. Also, look in local newspapers. Good Luck!

Answer 5

This Site Might Help You.

RE:
whats wrong with rent-to-own cars?
My credit is flimsy and I now work part-time, so the car search has not been easy.

Now, I'm thinking of getting getting a rent to own car . should I?

Can u tell me why u recommend it or warn against it?

So far a $500-$1500 deposit for a decent looking car plus $300-$400/mo sounds...

Answer 6

Rent To Own Auto Center

Answer 7

I am assuming this is a used car, and you are renting it up until such time as you fulfill a payment of the vehicle. This sounds shady, but may be workable, depending upon the answers to the following:
1) How many months do you have to rent it before you own it outright?
2) At the end of that time, how much will you have paid on the vehicle?
3) What is the vehicles book value at this time, factoring in mileage and condition?
4) Is there a mileage agreement in the rental contract that may cost you more if you exceed the mileage?
5) How does insurance factor into this since you are not the owner?

If you can get satisfactory answers to all of these, it may be something to consider. The key I see is calculating the total cost to rent the vehicle up until you own it versus the blue book value of the vehicle to start with.

(I am assuming you mean a rent to own agreement, as opposed to a lease. A lease is far different and some other answers treat them as if they were the same.)

Answer 8

rent-to-own or buy-here-pay here lots offer dependable used cars for people with bad credit but still want a nice car. with a reasonable deposit you can drive off with a warrantee and only make payments for about 1 year instead of 5 years. after you pay it off you get the title. no more worries. also they offer 0% interest and no credit or co-signers are needed. in most case rent-to own helps way more people than are unhappy. only debeats who cant pay the payment are the ones who complain.

Answer 9

leasing is o.k. but at the end of your contract, two to three years, you end up paying more for any damages and miles overages. Plus, you still don't own the car. to actually buy it, you pay more money. over-all, i'd reccomend you go to a dealership and find out about low cost cars that you can afford to make make payments on and at the end of five or six years, you will actually own the car outright. my credit is not the best but last year i bought a new Hyundai Tiburon. they run about 14,500. and then of course the interest jacks up the price so i'm paying more but over five years my monthly payment is only 400.00. good luck in your car search!

Answer 10

I have a niece that had rent-to-own cars and they were a piece of crap. they usually go to auctions and buy them so you really don't have any type of warranty. it doesn't go towards your credit history. she went throught at least 5 cars until her father was convinced to co-sign for her a car. one of the cars she had the motor burned out. beware please. have someone you trust to look at it before. can you get someone to co-sign for you. or try to build up your credit otherways if this is your only option so that you can buy a better car later. and remember if your late on payment they can come and pick the car up and you just lost money.