Rent to own auto financing like try it before buying it
Posted on Tuesday, October 23, 2012 at 12:44:48 PM
There are several different kinds of auto financing options, including getting a lease and taking out a loan. There is also a middle ground that not all consumers pursue, and that involves renting a vehicle with the option of buying it outright. This may be appealing to shoppers who like a car initially but aren't sure they want to keep it for the long-term.
According to Auto Credit Express, leasing a car is like renting - there is no ability to own the car ever, and eventually the dealership will want it back. That means all that money is spent, with nothing to show for it. On the other hand, having a loan for a long period of time results in car ownership of a vehicle that is no longer worth what was paid for it. In both cases, having a middle ground of renting with the option to own is becoming increasingly appealing to more consumers, the source stated.
Especially for those still feeling the pinch of an economy in recession, leasing is the most expensive way to own a car, and getting a loan may be outside the scope of investment plans. The Vancouver Sun wrote that these options are what are making rent-to-own auto financing so popular.