New Rent vs Buy Calculator for Consumers
This shift in the buy-and-sell pattern has opened up possibilities of ownership for people of all credit levels. Our goal at Cars On Terms is essentially to let customers rent to own a car. What it comes down to at the end of the day is making a smart and informed decision.
Is Renting or Buying Right for You?
Between the cost and the long-term commitment, purchasing a vehicle can be a daunting move. However, the option to rent to own a car is becoming more widespread in Australia.
Making monthly payments on a car follows the same pattern as paying rent. Many times for the consumer, renting feels like a cheaper option than buying, especially when a purchases requires a large sum of money upfront. Making a significant purchase these days, though, resembles paying rent due to all of the financing options.
A tool invented by Australian Securities & Investments Commission (ASIC) to aid consumers in making an informed decision about this is the Rent vs Buy calculator. We want to explore the functions of this tool and the power it actually has to help you make the right decision.
Calculating Made Easy
Comparing prices at the grocery store is simple. You hold the two different jars of vegemite next to each other and decide how much money you want to spend. Comparing the price of "renting" and "buying" is more complicated. It is an important equation to consider, especially if you are looking to rent to own a car.
The Rent vs Buy calculator on ASIC's MoneySmart website was developed to help consumers who are debating between renting and buying to make an informed decision. Despite that fact that making multiple lower payments initially feels like the more affordable option, you can end up paying up to four times more than the purchase price after all the lease payments have been made.
The calculator calculates the difference between the purchase price and total lease payment of an item. First, you enter the item you wish to buy, such as a car. Next, you enter the rental payment and specify if the charge is daily, monthly, or weekly. Under "rent details," you enter the period of time you will be renting said item. Underneath "buy details," you enter the actual purchase cost of said item.
Once you enter all of your information, the calculator provides an estimate of the two costs side by side. The end goal of this tool is to help you decide if it is worth it to rent to own a car.
From the Renter to the Owner
Here at Cars on Terms, we offer a better plan that allows making payments according to your own terms. We understand that each and every consumer has their own lives and economic situations, and we are simply here to make things work out of what is available. The ultimate goal is for you to own a vehicle. We can help you achieve that goal by selecting an appropriate financing loan plan, which suits your needs.
While other companies offer other types of options, such as rent to own, what we offer is a loan program, which will allow you to make payments within your means, and depending on your situation. We take each customer uniquely, addressing the situation on a case-by-case basis.
While renting to own is a viable option, it actually ends up more expensive than the plan that we can offer you. You only end up making higher repayments instead of saving money. Once you start writing down all the costs involved, why not consider owning something through a loan right on rather than going through the loan route, which is more complicated, anyway? With Cars at Terms, making such higher repayments will allow you to save money.
Once you sign up with us, we will assign you with a case manager who will then personally assist you in going through the application, making sure that we take into consideration your unique situation, and offer you what we can in order to help you get approved.
As a member of the National Credit Providers Associations, the Credit Investments Ombudsman Service, and serves as a holder of an Australian Credit Licence and Motor Dealers Licence, you can have the assurance that we have the necessary qualifications to provide assistance, not just in applying and having your car loan approved, but also to assist you in improving your future finance chances. We believe that you will be able to find a useful and satisfactory plan with us here at Cars on Terms.