Rent to Own vs. Buying a Car

Are you in the market for a new car? Although buying a car is the most common way to get behind the wheel, it’s not your only option. You can also rent-to-own a car, a wonderful course of action for people with bad (or no) credit who aren’t able to obtain an auto loan. Each option comes with advantages and disadvantages, though they both lead toward a new vehicle. So if you’ve been debating your financing options, we’re here to help. Today we’re debating rent-to-own vs. buying a car: which is the best choice for you?

How Rent-to-Own and Buying Compare

Car Ownership Timeline

Whether you choose to buy or rent-to-own a car, you will own the car at some point in time. However, when you buy a car, you own the car outright and immediately. When you rent-to-own, you own the car at the end of your payment period. You’ll reach the same destination either way, but the journey to that destination differs.

Credit Checks and Approval

If you need an auto loan to purchase a car, you must have a good credit score to be approved. Those buyers with bad credit or no credit should look into rent-to-own dealerships, where anyone can get a car regardless of their credit history. This is a fantastic option for people who have been struggling to obtain financing due to their credit history.

Paying for Your Car

When you buy a car, you can either pay for it all up front or use an auto loan. Saving up thousands of dollars will take time and dedication. Rent-to-own vehicles, on the other hand, have a fixed payment schedule that lands somewhere in the 2-3 year range, so that you can make smaller payments that are easier to swallow.

New vs. Used Vehicles

Bought vehicles are often new, while rent-to-own vehicles are typically used. Both options offer high-quality vehicles, but if you’re looking for a brand-new model, you will need to buy it outright. Remember to think about the car’s quality, not just its newness and flashiness. Although rent-to-own vehicles aren’t new, they offer a very solid, dependable, and reliable option.

_____There are pros and cons to each option. Take your time and ask yourself a few crucial questions: Do I want to own the car at the end of the term or give it back? Is my credit score high enough for an auto loan? Would I prefer to pay all at once or at a more leisurely pace? Your answers to these questions should lead you in a firm direction. Good luck!

No credit? Bad credit? Don’t sweat it! If you’re interested in renting-to-own a car, be sure to check out Auto By Rent, the largest rent-to-own/lease auto dealer in Missouri. We can help you secure a quality vehicle regardless of your credit history. To learn more about our services, contact the location nearest to you or start exploring our inventory.

We look forward to hearing from you!

Updated August 5, 2026