How To Lease to Own a Car

Lease to own, which is sometimes called rent to own, is the perfect option for people who need a car but do not have the resources to come up with the large down payments or even large monthly payments that may be required under normal circumstances.  Under a lease to own situation a small amount of each payment is applied towards the purchase price of the car.  Read on to see if this option is for you.

1. Find a dealership that offers lease to own - Not every dealership does but there are usually several to choose from in any given city.  Many times these will be your smaller car lots, although a few of the larger dealerships have embraced this option.


2. Review the terms of the agreement - These terms should include how much of the payment will go towards the purchase price, as well as such things as who is responsible for repairs while you are leasing the vehicle.  You can usually negotiate the amount that is going towards the purchase of the vehicle and you will want to ensure that this is as high as it can be. 


3. Understand how often payments are due - With rent to own these payments are sometimes due weekly.  If you do not agree with the lease terms go to another dealer.


4. Select a vehicle that meets your needs - Consider gas mileage, size and how long you will be using the vehicle.  Often with this method of payment, you will be keeping the vehicle longer than you would if you purchased it outright.  Ensure that the vehicle is in good mechanical condition by asking to take the vehicle to your mechanic to have it inspected.


5. Provide the necessary documentation - Some places will require you to have proof of insurance, a copy of your driver's license and copies of your pay stubs while others may just ask you for this information.


6. Complete the paperwork and pay the upfront fees - Read your paperwork and ensure it includes the terms that you have agreed upon upfront.  Once you sign the paperwork, you are contractually bound by the terms of the agreement. Once you pay the required cost you are ready to drive your vehicle home.