Rent-to-own car agreements can be a pathway to car ownership for many Australians, but they're not the right fit for everyone. Here's what to consider.

Who Might Benefit from Rent-to-Own

**People with Limited Credit History**: If you're building your credit or have a limited credit history, rent-to-own may offer an alternative path.

**Lower Upfront Costs**: If you need a car but don't have a large deposit saved, rent-to-own typically requires less upfront.

**Structured Payments**: Weekly or fortnightly payments can be easier to budget than monthly loan repayments.

**Bundled Services**: Some agreements include registration, insurance, and servicing in the weekly payment, simplifying your expenses.

Important Considerations

**Total Cost**: Understand that the total cost over the agreement term may be higher than a traditional car loan.

**Ownership**: You don't own the car until the agreement is completed and final payment is made.

**Commitment**: Rent-to-own agreements are binding contracts. Early termination may incur fees.

**Fees**: Be aware of potential fees for missed payments, excess kilometres, or damage.

Questions to Ask Yourself

. Do I have stable, regular income?
. Can I commit to weekly/fortnightly payments?
. Do I understand the total cost over the term?
. Am I comfortable not owning the car during the agreement?
. Have I explored all my options, including traditional loans?

Making the Decision

Take time to understand your options, read all terms carefully, and consider seeking independent financial advice before entering any agreement.

*This information is general only and does not take your personal circumstances into account. Consider seeking independent financial advice.*