Rent to Own

The term rent to own refers to a type car dealership that directly finances the vehicles that they sell. Like buy here pay here, in-house financing, and tote the note dealers, rent payments are usually made at the dealership on a weekly or bi-weekly basis. And like those dealers, the small gap between payments offers the dealer the ability to quickly repossess the car if payments aren't made. In addition, most rent to own car dealers don’t check the credit of borrowers. One difference is that, unlike buy here pay here dealers, renters don’t own their vehicles during the rental term, although most of these contracts come with the option to buy the vehicle for a small charge at the end of the rental period. The disadvantage of these dealers is that many of them don’t report loans or payments to the credit bureaus, so even if all payments are on time, the rental won’t improve a borrower’s credit.