Dealers that accept bad credit car
Do you want to be able to change your car regularly, without having to worry about reselling it? The Rental with option to purchase (LOA) allows you to use a new or used car subject to the monthly payment to the lending organization which financed it while retaining the possibility of buying the vehicle at the end of the rental .
How it works ? What are the advantages and disadvantages of renting with option to buy? JeChange tells you everything.
More than a credit formula that would have the wind in its sails: a real underlying trend!
Rental with option to purchase (auto LOA), also called "auto leasing" is in fact increasingly sought by individuals and professionals as an alternative to auto credit to finance the purchase of a vehicle. As proof: one in three vehicles was purchased via an LOA in 2017.
The principle ? Very simple: you choose and use the vehicle of your choice, for the duration of your choice, subject to the payment of monthly payments, more often called "rents". Concretely, the bank or the lending organization buys the vehicle, then rents it to you and undertakes to sell it to you at the end of the contract, only if you wish. You car dealer that accept bad credit therefore retain the option of not exercising the purchase option and returning the vehicle, in order, for example, to start again on another LOA contract or to buy a vehicle with a conventional car loan.
The LOA has many advantages. Its flexibility and modularity allow it to adapt to a large number of different driver profiles. Its main advantages are:
- a lower monthly payment than with a conventional loan, which makes it possible to lighten your monthly budget or to access higher-end vehicles;
- quick and easy access to a new, efficient and reliable vehicle;
- the duration of the LOA as well as the total mileage are determined with the tenant, according to the actual use that it provides;
- it is possible to buy the vehicle at the end of the contract or to return it, as desired;
- it is not necessary to provide a contribution. Be careful, however, if these contracts do not provide for a sum to be paid at the time of signing the contract, it is sometimes asked to pay a first increased rent. It is therefore strongly recommended to anticipate this first investment at the time of signing the contract or to move towards LOA offers without increased rent.