What is the difference between rent-to-buy and finance?

In today’s tough economic times, it can be tricky to obtain motor vehicle finance. We don’t have a reliable public transport system in SA, and so for many it’s essential to have a trustworthy vehicle to get you from point A to point B.

At Future Motor Lease we offer you options other than motor vehicle finance to help you drive the car of your dreams.

What is the difference between rent-to-buy versus car finance?

Rent-to-buy is one of a few financial options to consider when wanting to get a new or used motor vehicle. Rent-to-buy means that you sign a lease with a reputable motor leasing company which allows you to lease the car from them for a predetermined amount of time. At the end of the lease you can either return the car to them and lease another car, or you have the option to buy the car at the end of your lease.

When you finance a motor vehicle, it can be a lengthy and tedious process, including background credit checks and financial institution applications. The difference is that once you have obtained your motor vehicle loan, the car is yours, provided you don’t default on any payments.

Points to consider before entering into a rent-to-buy agreement or finance application

Each person has a unique situation that will affect their choice when purchasing a new or used motor vehicle. Let’s look at some pros and cons of a rent-to-buy lease agreement;


  • No background credit check required
  • No interest charges which means there is a tax benefit
  • Monthly payments are cheaper than motor vehicle loan repayments


  • Rent to buy lease agreements must be read carefully, especially with regards to the termination of said lease agreement
  • At the end of the lease agreement, the motor vehicle does not belong to you, which means you have no equity in the vehicle
  • May not be worth your while if there is a mileage limit. Some agreements are very strict about the amount of mileage you can drive, and there are very stringent penalties for going over the mileage restriction limit

When it comes to financing a new or used car, there are also positive and negative points to consider too;


  • After making all payments for the predetermined loan period, the vehicle belongs to you
  • You can use your vehicle for long trips as there are no mileage restrictions
  • You can purchase a pre-loved vehicle that is older than 5 years old


  • Arduous administration process including background financial checks
  • If you default on a payment, the bank or financial institution can repossess the vehicle
  • Costs of servicing and maintenance of the vehicle, are costs which you must pay for, over and above your monthly vehicle repayment amounts

Although both rent-to-buy and finance options each have their own pros and cons, it always boils down to personal choice. Just make sure to read the T & C’s of each financial agreement to see what best works for you.

For more information on renting or leasing the perfect car for your family, get hold of Future Motor Lease now on 011 026 0003.