From Ipswich to Coolangatta and all points in between, Brisbane residents can rent cars they can own.
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People living in Brisbane, the Sunshine Coast, Gold Coast, Redland, Ipswich and suburbs are turning to rent to own car solutions due to having trouble securing finance. Customers with bad credit, ex- bankrupts, students, or young people new to the workforce may find they are rejected for car finance due to a lack of credit history or impaired credit history. Rent to own is an arrangement that is not a type of loan or lease but rental agreement; this means rent to own does not involve credit checks or credit inquiries. Instead, your application is assessed on whether you can comfortably afford the rent each week as well as a one-off security deposit. After two years, you have an option to buy the car as each rental payment contributes to ownership.
Yes, rent to own is becoming a popular option for people who are having trouble getting approved for car finance to own their own vehicle. It can also help people who want to avoid the high costs of bad credit car finance, which can attract interest rates upward of 24%p.a., or even as high as 40%p.a. with fees and charges factored in (as a comparison rate.)
Rent to own connects people who need to use a vehicle for getting to and from work or school, picking up the kids, caring for someone in need, or for general driving to a range of late model vehicles that are checked for safety and reliability and hold a recent roadworthy certificate (RWC.) Cars are available for pick up in Brisbane and depots in the greater Brisbane, Sunshine Coast, and Gold Coast areas.
There is only one upfront cost with rent to own and that is the security deposit. The security deposit or setup fee is a one-time fee payable to begin the rent to own agreement. This is shown up front and proportional to the value of the car. However, you will not have to pay for insurance, registration, maintenance (scheduled servicing) and other on-road costs out of your own pocket. This is shouldered by the rent to own provider. Once you own the car, however, all responsibility for registration, insurance etc. falls to you.
No. You can rent for as long or as little as you want, although the option to purchase the car does not become available until at least two years of participation in the program. At the end of the two-year agreement, you can purchase the vehicle, upgrade your vehicle, and begin a new rent to own agreement, keep renting, or walk away. You can cease the agreement at any time if you no longer want or have a need for a car.
Rent to own arrangements are not formal credit or finance arrangements and are not subject to responsible lending requirements. Responsible lending requirements, enforced in part by the Australian Securities and Investments Commission, compel a licenced credit provider to make all necessary checks that a loan does not leave the borrower worse off compared to when they first applied for the loan. This means some borrowers, despite having a satisfactory income and expenditure level, may not qualify for loans due to a poor credit history. Lenders conduct a mandatory credit check (with the consent of the applicant.)
Since rent to own arrangements are not credit products, a rent to own provider can make the same assessment using similar documentation, such as payslips, residential histories, bank statements, and household budgets. A car renter cannot “default” on a rental agreement in the same way a borrower can with a car loan. Rent to own providers conduct suitability and eligibility checks in much the same way and will refuse an agreement to someone who cannot afford the rent. The critical difference is that one’s credit history or credit score is not the barrier to entry in a rent to own arrangement.
The cost of weekly rent varies depending on the age and model of the car. For example, a 2014 Ford Fiesta hatch may cost about $140 in rent, while a 2011 Holden Captiva SUV 7-seater could cost about $155. Older models may cost less than $100 while high-performance later models could set you back over $200 a week. As mentioned earlier, the rental cost also includes on-road costs such as insurance, registration, and scheduled servicing. You do not have to pay out of pocket for these costs, as they are included in the agreement.
Rent to own cars are subject to availability. However, there are many different late model cars to choose from, from small cars, family cars, 4x4s or SUVs, sports cars, and even light commercial cars such as utes or vans. You should choose a car that suits your budget and what you intend to use the car for. If you need a car just for yourself, a compact or medium-size car may be suitable. If you need to shuttle a family around to and from school and weekend activities, an SUV or family-sized car is better. You also need to factor in costs – the bigger or more powerful the car, the more it will cost in rent each week. If you miss out on a car you had an eye on, don’t worry – more cars become available all the time in Brisbane and the suburbs. Trucks are also available through our rent to own truck options.
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Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
© Copyright 2024 Quantum Savvy Pty Ltd T/as Savvy. All Rights Reserved.
Quantum Savvy Pty Ltd (ABN 78 660 493 194) trades as Savvy and operates as an Authorised Credit Representative 541339 of Australian Credit Licence 414426 (AFAS Group Pty Ltd, ABN 12 134 138 686). We are one of Australia’s leading financial comparison sites and have been helping Australians make savvy decisions when it comes to their money for over a decade.
We’re partnered with lenders, insurers and other financial institutions who compensate us for business initiated through our website. We earn a commission each time a customer chooses or buys a product advertised on our site, which you can find out more about here, as well as in our credit guide for asset finance. It’s also crucial to read the terms and conditions, Product Disclosure Statement (PDS) or credit guide of our partners before signing up for your chosen product. However, the compensation we receive doesn’t impact the content written and published on our website, as our writing team exercises full editorial independence.
For more information about us and how we conduct our business, you can read our privacy policy and terms of use.
