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An advantage of rent-to-own car agreements, is that they can be set up quickly and easily - often with no credit checks and, generally, with the option to purchase at the end of the rental term.
However, there are other options available if you have credit concerns, which we may be able to help you with.
When you apply with us:
Note: Rent-to-own car agreements are not available via Rapid Finance, but we could assist with alternative car loan options for people with bad credit. To qualify, you must be an AU citizen or permanent resident, earn over $700 per week and have unpaid defaults under $5K.
"Rent-to-own" cars are a type of agreement where you make regular rental payments on a vehicle, typically with the option to buy it at the end of the rental period. This arrangement combines elements of both car rental and car purchase, providing a path to ownership for those who may not qualify for traditional car financing due to very bad credit, no credit history or other issues.
An alternative solution, is a bad credit car loan. See below, how they compare.
Bad credit car loans and rent-to-own car agreements both provide options for individuals or businesses with poor credit or limited financial history to acquire a vehicle, but they differ in structure, terms, and implications for ownership and credit. At Rapid, we get many customers interested in rent-to-own, as an option, who end up choosing a bad credit car loan option instead. Here's a comparison of the two:
Bad Credit Car Loans: These require a credit check, but the criteria are less stringent compared to standard car loans. Approval is often based on a stable income or your overall situation, rather than credit score alone.
Rent-to-Own Car Agreements: Typically, no credit check is required, making this an attractive option for those with very poor credit or no credit history.
Bad Credit Car Loans: You gain immediate ownership of the car, but the lender has a legal right to take it back if you don't repay the loan in full.
Rent-to-Own Car Agreements: You do not own the car during the rental period. Ownership is typically only transferred after all payments are made, assuming the agreement includes an option to buy.
Bad Credit Car Loans: You make weekly, fortnightly or monthly loan payments, which include interest. The rate could be significantly higher due to the perceived risk of lending to individuals with bad credit.
Rent-to-Own Car Agreements: Payments are often made weekly or bi-weekly and are typically higher than loan payments because they combine rental fees and contributions toward purchase.
Bad Credit Car Loans: Interest rates may be higher (due to the risk to the lender), and there might be additional fees, but these costs are spread out over the loan term.
Rent-to-Own Car Agreements: There could be higher overall costs due to rental fees, and some agreements may require a large final payment to purchase the car.
Bad Credit Car Loans: If reported to the credit reporting bodies, timely payments could help improve your credit score.
Rent-to-Own Car Agreements: These agreements are not typically reported to credit agencies, so they may not help in building or improving your credit score.
Bad Credit Car Loans: The contract is binding, and early repayment may come with penalties.
Rent-to-Own Car Agreements: These might offer more flexibility to return the car without purchasing, but terms can vary widely, so it's crucial to understand the agreement fully.
While both options provide avenues to vehicle ownership for those with poor credit, the choice between them depends on individual circumstances, financial stability, and long-term goals. Bad credit car loans offer a path to improve credit and achieve ownership with predictable costs, while rent-to-own agreements offer more immediate, flexible access to a vehicle with potentially higher overall costs and less impact on credit improvement.
Note: While Rapid Finance do not offer rent-to-own car agreements, we can review your options and goals with you and often assist with a bad credit car loan solution or suggest ways to improve your credit, before applying for a car loan.
You may think that rent to own is your only option, to break out of the rental trap. It isn't and we could help!
Read moreIn Australia, all car loans involve a credit check. Even if you've got a few skeletons hiding in your closet (or credit file), you may still be able to obtain a car loan with bad credit.
Read moreDiscover the benefits of "rent to own" car agreements: a flexible, credit-friendly path to car ownership. Learn how Rapid Finance can guide you through accessible solutions, regardless of your credit history.
Read moreRent to own cars, refers to a financial arrangement where you make regular rental payments on a vehicle, often with the option to purchase it at the end of the rental term. This type of agreement is particularly beneficial for individuals who may not qualify for traditional car financing.
Note: Rent-to-own car agreements are not available via Rapid Finance, but we could assist with alternative bad credit car loan options.
Typically, a full credit check is not required for a rent to own car agreement, even if you have a history of bad credit.
Rapid Finance do not offer rent to own agreements, however, we understand that everyone's financial situation is unique and may conduct a 'soft' credit inquiry, when you apply with us. This approach assesses your options without leaving any 'hard' marks on your credit file, offering a judgement-free path toward owning a vehicle.
Rent to own agreements could be more accessible than bad credit car loans, especially for individuals with poor credit histories. They offer a pathway to ownership without requiring a loan and may provide more flexible terms.
Note that, Rapid Finance do not offer rent-to-own car agreements, but could assist with alternative bad credit car loan options.
No, sorry. Rapid Finance do not offer rent-to-own car agreements, but could assist with alternative bad credit car loan options. Many of our customers explore the option of rent-to-own car agreements, often before settling on bad credit car loans.
Yes, it is generally possible to get rent to own cars on Centrelink approved. Centrelink payments, including Family Tax Benefits and Disability Pension, could be seen as income for rent to own car applications. Also see our centrelink car loans page.
Note: Rapid Finance do not offer rent-to-own car agreements, but may be able to assist with alternative bad credit car loan options.
Qualifying for a rent to own vehicle, is typically much easier than getting a loan with bad credit. To qualify, you may need to provide identification, proof of income (such as payslips and Centrelink payments), and your 90-day bank statement history.
Note: Rapid Finance do not offer rent-to-own car agreements, but could assist with alternative bad credit car loan options. Rapid Finance will work with you to find the best options for your needs.
Yes, cars, vans, caravans, boats or other vehicles could be chosen as your rent to own vehicle, depending on the provider policy.
There may be initial fees or deposits required, depending on the specific terms of the agreement selected.
Note: Rapid Finance do not offer rent-to-own car agreements, but could assist with alternative bad credit car loan options.
The length of rent to own agreements can vary, but they typically align with the usual car loan terms, ranging from 2 to 7 years.
Note: Rapid Finance do not offer rent-to-own agreements, but could assist with alternative loan options.
The option to return the car before the end of the term depends on the specific terms of your agreement, which may include provisions for early termination.
Note that: Rapid Finance do not offer rent-to-own car agreements, but could assist with alternative bad credit car loan options.
At the end of the car rent to own period, you will often have the option to purchase the car outright, with your rental payments contributing towards the purchase price, or return the vehicle if you choose not to buy it.
Please note: Rapid Finance do not offer rent-to-own car agreements, but could assist with alternative bad credit car loan options.
The ability to pay off the rent-to-own car early will depend on the terms of your agreement, which often allow for early purchase.
Note: Rent-to-own car agreements are not available via Rapid Finance, but we could assist with alternative bad credit car loan options.
While rent-to-own agreements are not typically or directly reported to credit agencies, consistently making timely payments could indirectly improve your credit profile, enhancing your eligibility for future financing. At Rapid Finance, we have used customers' previous rent-to-own payment records, to demonstrate affordability and to help get car finance approved with lenders.
Note: Rent-to-own car agreements are not available via Rapid Finance, but we could assist with alternative bad credit car loan options.
Missing a payment could have implications as per your agreement's terms, potentially affecting your ability to acquire the car. It is important to maintain regular communication with the vehicle provider, in case of financial difficulties.
Note: Rent-to-own car agreements are not available via Rapid Finance, but we could assist with alternative bad credit car loan options.
While general use is typically permitted, commercial use or modifications may be restricted under the terms of the rent-to-own agreement.
Note: Rent-to-own car agreements are not available via Rapid Finance, but we could assist with bad credit car loans as an alternative.
Yes, it is possible to get a rent to own home and often with less strict credit approval rules than regular home loans. However, there are other home loan options for people struggling to get their home loan approved and get off the rental trap.