Buying a vehicle outright with cash means owning it from day one. However, using a large portion of your savings to purchase a vehicle could affect your future cash flow and financial flexibility.

Rent to Buy or vehicle leasing may be an alternative worth considering when looking for a new or pre-loved vehicle, especially if you’re currently under debt review.

Rent to Buy allows you to enter into an agreement with a reputable motor leasing company, giving you access to a vehicle for a predetermined period.

But how does it work, and what are the advantages and disadvantages?

What Is Rent to Buy?

Rent to Buy means entering into an agreement with a motor leasing company that allows you to rent a vehicle for an agreed period.

At the end of the agreement, you may have the option to return the vehicle and rent another one, or purchase the same vehicle by exercising the buyout option, depending on the terms of your contract.

Pros and Cons of a Rent to Buy Agreement

Before deciding whether Rent to Buy is right for you, it’s important to understand the advantages and disadvantages.

Pros

• No traditional background credit check required: This may be helpful if you’re currently under debt review and struggling to qualify for traditional vehicle finance. Application approval remains subject to the provider’s requirements.
• No traditional vehicle finance interest charges: Rent to Buy agreements have a different payment structure from conventional vehicle finance.
• Additional benefits included: Monthly rentals may include vehicle insurance, a tracking device and 24-hour roadside assistance, depending on the provider and agreement.
• Option to purchase the vehicle: At the end of your rental agreement, you may have the option to purchase the vehicle at the agreed buyout price.

Cons

• Understand the contract terms: Rent to Buy agreements must be read carefully, especially regarding cancellation procedures, early termination conditions and any associated costs.
• Mileage restrictions may apply: Some agreements have strict mileage limits, with additional charges or penalties if you exceed the agreed allowance. If you regularly travel long distances, make sure you understand these restrictions before signing.

Need a Vehicle While Under Debt Review?

Just because COVID-19 may have affected your financial situation, it doesn’t mean you should automatically be without access to reliable transport.

Being under debt review can be stressful enough without having to worry about how you’ll get to work, manage family responsibilities or go about your daily life.

At Future Motor Lease, we offer an alternative to traditional vehicle finance through our Rent to Buy solutions.

Let us help take some of the stress out of getting behind the wheel of your next vehicle.

Explore your options today!

Visit Future Motor Lease to find out more about our Rent to Buy solutions and how we can help you get moving.