When you’re in a lease to own car agreement that means you’re not only renting a car, but renting it to later own the vehicle. Therefore what are the pros and cons of this type of agreement, let’s have a look.
Pro – You’ll not have monthly payments for a long time.
Meaning that at the end of your rental term you’ll be driving your car payment-free. After you’ve paid off the lease, you’ll own the vehicle.
Con – It’s an expensive sacrifice
As usually the car you’re to own is a used vehicle. And you’ll be paying significantly more then it’s actually worth, as the seller has to make a profit somehow. Therefore the payments you make will add up to a larger sum than the value of your car.
Pro – Credit checks are usually not required.
Having a contract that’s so light on requirements makes this type of agreement a highly viable one. As in most cases, all you need is the application criteria, proof of identity, residence, and income and enough money for a down payment. And it can be a great option for someone with bad credit who needs a car and doesn’t have the choice of borrowing one.
Con – A warranty is usually not included
Since the vehicle is likely to be an older model. Repairs will be needed down the line and you just won’t be covered for that, unless you purchase a warranty outside of your contract to protect yourself.
