Rent to Own Cars and Financing – Valley Auto Loans

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Are rent to own cars the best choice when looking for a new vehicle? Anyone with sub-par credit that is considering buying a new car should fully understand why some dealers do not care about their credit situation, and others view the matter with great importance.

We at Valley Auto Loans do know the difference due to our history of work with bad credit auto loans and vehicle purchasing. In this post we will try to best explain the differences between our own network of dealers, and those dealers that advertise rent to own trucks, cars and other vehicles. Also, before leaving be sure to fill out our auto loan application where we accept 100% of all applications.

Rent to Own Cars or Vehicle Leasing

The words “Renting and Leasing” are commonly thrown around, and in general understood to mean the same thing. They are not the same thing however, and dealers offering rent-to-own cars are banking on the fact that most car loan shoppers don’t know the difference.

Traditionally, when leasing a vehicle the customer only pays monthly fees for the usage of the vehicle. This applies to 2-year leases, and you will eventually pay for 24 months of interest, as well as a fee based on the car’s depreciation in value. Typically, new car leases do not require a down payment, this is because the individual leasing the vehicle is almost always “Inverted” (The car itself is not as valuable as the buyout) during the car’s lease (Most leases are designed so that the vehicle is only worth its buyout by the end of the lease period).

Because clients who use leases usually do not have any of their money invested in a down payment that could upset potential losses if they should walk away from the car, lenders usually lease to higher risk than retail financing and usually save this option for the most qualified applicants – those with good or excellent credit.

Financing for Rent to Own Vehicles

Rent to own cars, however, are much more like buy here pay here (BHPH) programs. This means that loans acquired at rent to own lots will require large down payments as well as high monthly interest rates. Rent to own customers that cannot pay their dues on time, deal with the rental company. Failing to follow the terms of the rental contract will result in the repossession of the car.

Pros and cons of Rent to Own Vehicles

These are the basic facts of rent to own vehicles.


• Most rental vehicles are much less pricey, many people choose to pay weekly.
• Payments are made in person, this means that you will have a better-established relationship with your agent.
• Many rental companies do not require a credit check before lending a car.
• For those with very bad credit, rent to own cars may be their only choice.


• Rent to own cars typically do not check in with credit bureaus
• Rent to own vehicles are usually older and therefore more likely to be unreliable.
• It can be a hassle to make payments each week on location.

Our take on the matter.

Those looking for cheap transportation outside of used cars have the best bet with rent to own vehicles. For those looking to fix their credit situation, rent to own vehicles may not be the safest option. It is a better option for most to begin re-building credit, possibly by getting a bad-credit auto loan to purchase a car, then make payment. View Valley Auto Loans’ bad credit loans here, instead of going for rent to own vehicles, and enjoy our 100% Application Acceptance record.