Because you are a PCO (Private Hire Vehicle) driver, you understand that living in the fast lane financially on the road can prove costly. There are many costs that go into driving a business vehicle. There are some sneaky costs, and you do not even realize they exist. But there is a solution to dodging most of the sneaky hidden costs: rent-to-own vehicles.
A rent-to-own vehicle is a vehicle you rent but can choose to buy later. This works best for PCO drivers because it keeps you off most of the sneaky costs that you would be exposed to when you’re driving a typical car rental or loan. In this blog, here, we are going to discuss the sneaky costs that rent-to-own vehicles will keep you from.
What Are Rent-to-Own Cars
A rent-to-own vehicle is a vehicle you lease, but can purchase the vehicle in the future. You pay a monthly fee to lease the vehicle. Part of the leasing fee, however, does cover buying the vehicle so that you can purchase the vehicle in the future.
This is a perfect choice for PCO motorists who wish to own their car in the future but do not have to pay extortionate upfront fees. Using rent-to-own, you are able to drive the vehicle to the office and save over time, which you can eventually use to buy the car.
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Avoid Excessive Upfront Charges
When you purchase or lease a car, there is a large initial fee. For instance, you may be required to pay a huge down payment, deposit, or even the full cost of the vehicle. These amounts are likely to be very costly, and not all drivers will be able to afford them.
With rent-to-own cars, you don’t have to pay that much as a down payment. You pay smaller amounts each month instead. It is easier, and it saves you more money in the long run, which means that you own the car.
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Avoid High Interest Rates
If you borrow money to purchase a car, you may be paying a significant amount of interest. What this accomplishes is that you pay more money in the future than you borrowed in the first place. With high interest rates, you find it difficult to finance the cost of the car, particularly for PCO drivers who use their cars as part of their company.
When you lease a vehicle on rent-to-own, you are not charged high interest. Rent-to-own transactions most of the time have low or no interest, so you will not be adding extra cash. You are paying for the vehicle itself, so it is cheaper.
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Don’t Pay High Insurance Rates
You must have special insurance for your vehicle when you are driving as a PCO driver. It is commercial insurance, and it is very costly. If you are renting a car, you will usually be charged extra to insure it.
With rent-to-own vehicles, insurance can be added to the monthly price tag. This is cost-effective and convenient for you as you won’t have to seek about and pay for insurance separately. It reduces the expense of vehicle ownership significantly.
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Don’t Pay Extra for Maintenance and Repairs
Cars should be maintained from time to time, such as oil changes, tire rotation, and maintenance. If you are leasing a car, all of this could cost you a lot of money. Companies may not cover this, and you will have to pay in cash for repairs that are required.
With a rent-to-own vehicle, you can include maintenance and repairs in the agreement. So you do not need to use your own cash for repairing or maintaining the vehicle. It keeps your money secure and makes your driving experience less prone to hassle.
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Avoid Depreciation Expenses
The minute you purchase a car, its value depreciates over time. This is also called depreciation. It means that when you sell your car, it will be of lesser value than what you originally purchased it for. This isn’t very pleasant if you intend to sell the car at some future date.
With a rent-to-own vehicle, you do not have to worry about depreciation. You can bring it back whenever you do not require the vehicle during the period of renting if you find you do not like it. You can buy it if you want, and at a reasonable price without incurring loss through depreciation.
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Flexible Payment Plans
One of the most convenient aspects of rent-to-own vehicles is that you can often choose a payment schedule that works for you. With traditional car loans, you might be stuck paying the same amount every time, even if your situation is different or you have a terrible month.
With rent-to-own vehicles, you even get to select a flexible payment schedule. If you do not have a fixed income, you get to pay less. It is perfect for PCO drivers who do not have a fixed income. It lets you own your car without having financial issues.
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Don’t fall into the Early Termination Charges trap
If you end a normal car lease early, you might have to pay extra fees. But with rent-to-own cars, you usually don’t have to pay anything if you stop early. If you want to discontinue renting or purchase the vehicle ahead of time, you do not have to incur extra charges. This provides you with greater autonomy and flexibility in controlling your car rental contract.
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Steer Clear of Hidden Fees Under Old Car Leases
Even most car leases have hidden fees. There may be additional fees for miles, wear, or early return of the car. You would not know the costs at lease signing, and this can cause unexpected charges.
Rent-to-own vehicles are less complex. You have a very clear idea of what you will be spending every month. The agreement is straightforward, with no added costs. It is easier to budget and leaves you financially better off.
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No Credit Check for Some Rent-to-Own Cars
If you have poor credit or no credit, it is difficult to rent a car or borrow to buy one. Most car rental businesses and car finance businesses do a credit pull, and with poor credit, they will not lend you money.
With rent-to-own autos, most of the firms will not pull your credit. That’s correct — you won’t have to worry about your credit score to lease a car. With bad credit, too, you can still utilize a business vehicle and make your way into owning the auto.
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Own the Car Eventually
One of the benefits of rent-to-own vehicles is that you can own the vehicle in the future. You can buy the vehicle if you make monthly payments for several years. This is easier for PCO drivers fleets because they can have their own vehicle without paying a large amount of money up front.
Owning a car means you will no longer be paying rent. The car is yours once you have made the payments, and you keep using it for driving PCO work without monthly rental fees.
Conclusion
If you are a PCO driver, renting-to-own cars is best to keep your money safe and never have to pay any hidden charges. These cars help you in preventing high start-up costs, high interest charges, and other hidden charges. Besides this, you can also have the option to own the car in the future.
Rent-to-own vehicles can make and simplify your life as a PCO driver more affordable. We provide rent-to-own vehicles at Primal Cars that can save you money while you drive as a PCO. Call us today to purchase the best vehicle for you!
FAQs on Rent-to-Own Cars for PCO Drivers
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What is a rent-to-own car?
A rent-to-own vehicle is a vehicle you lease but will own in the future. Some of your rent goes towards owning the vehicle, and thus, you can own the vehicle someday.
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What do rent-to-own vehicles do to PCO drivers?
Rent-to-own cars help PCO drivers avoid big upfront payments, interest, insurance costs, and repair fees.
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Do I need good credit to own a rent-to-own vehicle?
Most rent-to-own car programs don’t need a credit check, so you can get a car even if you have bad or no credit.
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May I purchase the car early?
Yes, most rent-to-own car programs permit you to purchase the car early if you desire. There are usually no charges for doing this.
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If I don’t want to purchase the car?
If you do not buy the car, then you merely return the car on the end date of the rental period at no cost without any extra fee.