How to Rent to own a car

Many people cannot meet the financial requirements needed to own a car. However, these same people often need a car the most. Rent to own automobile dealerships are springing up throughout the country. In a rent to own arrangement you pay a lower monthly payment and a portion goes towards your ownership.

Difficulty:

Moderate

Instructions

1. Locate a dealership that offers rent to own cars. Many dealerships are still dragging their feet on this option, so it would be in your best interest to phone ahead and ask to speak to a sales or finance manager before you even look at the merchandise. This manager will tell you if they do rent to own. If they don't and the manager is kind, he might point you to a dealer who does.

2. Discuss the terms of the agreement. Find out who is responsible for repairs and the amount of your monthly payment when you begin to rent the car. Also ask about any specific auto insurance requirements.

3. Negotiate how much of the monthly rent will go toward your ownership. This is the key component in rent-to-own arrangements. A portion of your monthly rent is applied to ownership. Find out how much goes to ownership and negotiate to get the highest amount possible.

4. Select a car. Think of all the factors that will go into your usage of the vehicle. Find out if the price works with you, whether the size is right and the gas mileage. These little details are key when selecting a new car. Because you're using a less-than-standard method of purchasing a car, discuss the terms before you look at cars.

5. Fill out the necessary paperwork to complete the rent to own arrangement. Different dealers will have different requirements. Many will need to see proof of insurance and driver's license, as well as proof of employment.