Get bad credit car leasing and loans here
Rent or buy? In both cases, solutions exist for individuals who want, in the future, to own a vehicle without spending all their savings. Two systems are possible: the lease with an option to purchase and the car loan.
In the long run, buying a vehicle is always more profitable than renting. Because, if you have to pay more money at the beginning, the owner can resell his property at term and at the price that suits him. While in a rental, the rent paid is lost forever. Individuals wishing to acquire a vehicle now have several options to become owners:
- rental with option to purchase (LOA)
- purchase via a classic car loan.
Our low income car loans with bad credit allow you to buy a car without spending too much money at once.
The main advantage of renting with a purchase option (LOA) or “leasing” is that it allows you to have a new car and to change it regularly. At the beginning of the contract, the customer must pay a contribution that equates to 10 to 15% of the price of the car. The lease can last up to five years and every month the tenant pays rent.
At the end of the contract, the tenant can become an owner if he decides to lift his option to buy. He must then pay a deadline or 5 to 10% of the price of the new. Throughout the duration of the lease, the user must respect a mileage defined in advance, which can be binding. If exceeded, the amount to be paid is often high.
Auto credit is still today the most popular solution for the French to buy a car.
Auto credit allows individuals not to shell out a large sum at one time and can apply for a new or used vehicle. The principle is simple: the repayment of the credit is done monthly and according to the terms agreed with the lender, whether it is a bank or a specialized institution.
In France, interest rates for auto loans are generally cheap: they are around 6% over 4 years. The repayment period is fixed, which allows you to organize your finances. It can spread over a longer or shorter time depending on the case. As soon as the loan is granted, the borrower becomes legally the owner of the car.
Advantages and disadvantages of renting with the option to buy
- The amount of the monthly payments is lower than that of a car loan: one pays the use and not the property. These lower costs allow individuals with low repayment capacity to easily have a vehicle.
- The LOA is a flexible solution that allows you to change your vehicle as you wish.
- The duration of the contract and the mileage are defined according to the needs of the tenant.
- Exceeding the mileage set on the contract can be costly.
- Even if he is not the owner, the tenant is legally responsible for the rented vehicle.
- When the LOA contract comes to an end, the user will pay more to acquire the car than if he had bought it on credit from the start.
Advantages and disadvantages of auto credit
Purchase on credit or lease with an option to buy? The choice depends on the profile of the buyer. The LOA allows people with low repayment capacity to be transported without having to go through traditional financing methods. This option may be of interest to people who need a car without wanting to invest. But the main disadvantage of leasing is that, eventually, if the tenant wants to become an owner, he will pay more than if he had bought on credit.
Regarding the purchase on credit, it is possible to make a simulation of borrowing in a few minutes thanks to our simulator below. Good to know: getting a car loan is more advantageous if you have funds at the start and you are certain to be able to repay the loan each month.