Finding Rent-to-Own Cars with No Deposit

Get Car Financing
Even with poor credit.

By

Contributing Writer

Amy Fortune is a contributing writer for CarsDirect and lead writer/editor for AutoCreditExpress. She also contributes regularly to several other high-traffic blogs. Amy was born in North Carolina and grew up with an appreciation for NASCAR and everything automotive. Now based in the Motor City, she continues to be happily immersed in car culture and automotive finance.


, Contributing Writer - October 20, 2016

For car buyers with very bad credit who don't qualify for a subprime auto loan, going to a rent-to-own dealership is normally an option. These kinds of dealers typically don't run credit checks, so almost anyone who applies is able to qualify for financing.

As long as a customer can provide proof of a regular income and stable residence, as well as a valid driver's license, they can get a car. Of course, they will also need to provide a down payment or deposit on their purchase. This is because finding rent-to-own cars with no deposit is virtually impossible.

Rent-to-Own Cars, Lease-to-Own Vehicles and Auto Leases

It can be confusing because rent-to-own dealerships are sometimes called lease-to-own lots. But even though they may be called by different names, they offer the same types of programs. Regular vehicle leasing, on the other hand, is an entirely different thing.

Auto lease contracts don't always require a deposit. They do, however, almost always require the lessee to have good to excellent credit. This is especially true with those very enticing lease offers that you might see advertised. In order to be approved for a 0 down lease that comes with a low monthly payment, you need to have a high credit score.

Lease-to-own or rent-to-own cars, however, are meant for consumers with severe credit issues and very low credit scores. And because of the heavy risk attached to these kinds of buyers, these vehicles come with higher interest rates and deposit requirements. It's kind of a trade-off for bad credit buyers who really need a car. Sure, they can get a vehicle, but it may not come with the best terms and conditions.

Finding Rent-to-Own Cars that Will Help Your Credit

Rent-to-own dealerships provide a very necessary service to consumers who might not otherwise be able to finance a car. So if you know that a rent-to-own vehicle is probably the best option available to you, finding the right dealer is recommended.

Although it is becoming more common, not every rent-to-own dealer will report loans and timely payments to the credit bureaus. If you're able to purchase your car from one that does, your credit score might improve by the end of your contract agreement. This way, you might be able to qualify for a subprime auto loan the next time you need to finance a vehicle.

In this case, you can think of your rent-to-own experience as a step in the right direction toward getting your credit back on track. With this in mind, here is a general overview of what you can expect when you buy a car from a rent-to-own dealer:

  • You will need to bring your valid driver's license, most recent paycheck stubs, a utility bill addressed to you and money for a deposit.
  • The finance manager will determine what kind of a payment you can afford to make, based on your income. You will then choose a vehicle that fits your budget.
  • You will be expected to make either weekly or biweekly payments. And you may be required to pay them in person at the dealership.
  • The car that you select may be equipped with a GPS device and a "kill switch." This switch will enable the dealer to disable the vehicle if you are late with a payment.
  • You will probably be required to pay for all repairs that come up out of pocket.
  • As long as you make all of your payments on time, at the end of the contract, the car will be yours.

Again, purchasing a car through a rent-to-own program may not be ideal. But if you really need a vehicle and can't get approved for financing any other way, renting-to-own may be a good solution.

Bad Credit Auto Loans Made Easy

If you have bad credit and need to buy a car, you should explore all your options before assuming anything. It might be easier than you think to qualify for financing approval. At Cars Direct, we believe that everyone deserves a second chance. That's why we've partnered with the best car loan providers.

We'll work hard to get you into a car and back on the road fast. Because it's free to apply with us and there are no obligations, you have nothing to lose. Also, our secure 1-Step-Auto Loan Application only takes a minute to complete. So go ahead and get started today.

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, Contributing Writer

Amy Fortune is a contributing writer for CarsDirect and lead writer/editor for AutoCreditExpress. She also contributes regularly to several other high-traffic blogs. Amy was born in North Carolina and grew up with an appreciation for NASCAR and everything automotive. Now based in the Motor City, she continues to be happily immersed in car culture and automotive finance.


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