Is it better to rent or buy a car for on-demand driving? Each option has its pros and cons, but since they’re so different, there is going to be a compromise either way.
But what if there was a middle way that provided the flexibility of renting and the ability to own the car at the end of the agreement?
Our Rent to own car plan is a solution that combines the ease and flexibility of renting with the benefits of buying a new car. If you’re not fully committed to either one, this might be a solution to consider.
- What does it mean to Rent to own a car?
- Can I Rent to own a car with bad credit?
- How does Rent to own work with bad credit?
- How is Rent to own different to a car lease?
- Do I need a downpayment for Rent to own?
- Can I drive Uber with a Rent to own car?
1. How does Rent to own work for cars?
What does it mean to Rent to own a car?
It’s exactly what the name suggests. You’re renting the car, but it becomes yours at the end of your agreement.
Instead of saying goodbye to your hard-earned money at every weekly rental payment, you’re investing it long-term.
Can I Rent to own a car with bad credit?
Yes. As opposed to traditional car finance, where you first apply for a loan that you repay later, with Rent to own you pay one week in advance. Hence, there’s no need for credit and therefore you can own a car even if you have a poor credit score.
How does Rent to own work with bad credit?
Rent to own is very similar to a standard rental agreement. Since you always pay the next week’s rent, you can apply even with a bad credit score. Your Rent to own contract will also not affect your credit rating in any way.
How is Rent to own different to a car lease?
A Rent to own plan’s most prominent difference compared to a car lease is that you don’t need to apply for credit. But it doesn’t end there.
Here’s a list of the most important differences when comparing Splend’s Rent to own plan to a car lease:
- Your Splend Rent to own contract includes maintenance and roadside assistance
- Your Splend Rent to own car’s paperwork is always ready for on-demand driving (registration, Loss and Damage Cover, etc.)
- At Splend, you get dedicated driver support via your own Member Success Representative
- With Splend Rent to own you can take annual payment holidays of up to four weeks after your first year.
Do I need a downpayment for Rent to own?
Yes. The amount will vary depending on your Rent to own provider.
With Splend there is a one-off $990 joining fee to cover the costs of ordering and shipping your car, as well as the necessary paperwork so your car is ready for work from day one. The joining fee also gives you lifetime access to all Splend member benefits such as dedicated support, exclusive partner discounts, member events, and more.
Can I drive Uber with a Rent to own car?
Yes, you can drive with Uber if it’s stipulated in your Rent to own agreement.
Splend’s Rent to own plan is tailored for Uber drivers and other on-demand drivers who need new-model cars to provide a quality service, and a flexible payment plan that fits their dynamic lifestyle.
Our Rent to own cars meet all safety, accessibility, and emissions standards for on-demand driving in Australia, and they come with all the paperwork prepared, such as registration and Loss and Damage cover.
2. Why Rent to own?
What are the pros and cons of a Rent to own plan?
The biggest pro of a Rent to own plan is the flexibility it provides when compared to a car lease or car finance. It’s one of the most accessible ways to buy a car – it only takes 10 hours a week of driving.
The biggest con of a Rent to own plan might be the slightly higher upfront cost when compared to car finance, since with Rent to own you pay the downpayment and one week’s rent in advance.
Is Rent to own worth it?
This depends on many factors, but if you’re looking for a flexible way to own a brand-new or used car, then the answer is yes.
At Splend, we recommend our Rent to own plan for you if:
- You want to own a new-model car with less commitment
- You’re an on-demand driver and plan to drive for rideshare and delivery apps for at least three years
- You don’t mind a slightly higher upfront cost in exchange for more flexibility down the road
- You want an all-inclusive service tailored for on-demand driving
If you’re after ultimate flexibility and you don’t want to own the car you use for on-demand driving, you might want to check out our Uber car rental plan.
3. How to get a Rent to own car
How can I get started with Rent to own?
After you’ve paid the joining fee, you’ll also need to pay a partial fee for the remainder of the week you decide to pick up the car on, as well as the full amount for the next week. This is because Rent to own is not a credit-based payment plan, so you always pay for the upcoming period instead of repaying a debt.
Do I need insurance for my Rent to own car?
Same as any car on the road, Rent to own cars also need insurance.
With a Splend Rent to own plan, you don’t need to worry about it, because our agreement includes the Loss and Damage cover that also allows for on-demand applications such as Uber.
Can I Rent to own a car with a debit or credit card?
Yes. Depending on your provider, you can use a debit or credit card, issued by any bank.
With Splend, we charge your nominated debit or credit card with your weekly rental fee plus any additional charges every Wednesday. You only need to make sure you have enough money in your account when your payment is due.
How much does a Rent to own car cost?
This amount will depend on the weekly cost associated with your Rent to own plan.
At Splend, if you picked up your $359 per week Mitsubishi Outlander on a Wednesday, and opted for the 26-week minimum rental period, it will cost you $1,851.6 in total to get started. Remember, this includes the $990 one-time joining fee, plus four day’s worth of rental payments until Sunday, as well as the whole next week in advance.
Additional charges may include your excess mileage fees or any late fees in case you miss a payment. For Splend Rent to own these amount to $0.10 for every km above your 1,000-kilometre weekly allowance, and go towards early repayment—the more you drive, the sooner you own the car.
We enable people to make money by driving. Our vision is a future where every on-demand driver can be successful.
We’re Rent to own specialists. We can set you up with a brand-new or new-model car on a Rent to own plan, plus we provide the training and support you need to be an Uber driver and have a more profitable, safer, and fulfilling career.
Drop by your local Member Support Centre email us, or say hello on 1800 775 363