Very often, the advertisements highlight the low monthly payments and the peace of mind of the rental. Remember that roughly, the latter is worth it if you plan to change your car often and the interest rate is attractive. On the contrary, if you plan to buy the car afterwards, it's different, and you should first of all find out what it will cost you.
Do not give a deposit if you rent. In the event car finance no credit check of total loss, theft or breach of contract, this amount will be lost - and downright irrecoverable. Even if this deposit could have lowered your monthly payments, the economy is not worth the risk of losing your bet.
Prefer higher monthly payments or, if you want to lower them, pay a multiple security deposit. This deposit will allow you to get a better interest rate, and you will recover it in full at the end of the lease (unless you use it to pay off the bill related to possible excessive wear and tear on the car).
Do you choose long-term rental with purchase option? Then try to obtain the following information, because they are all important:
If you buy or rent a car from a merchant, you are not required to finance it from him. And if you are dealing with an individual, you will not have access to financing unless you apply for a loan from the bank (personal loan, car loan or mortgage line of credit).
To get a car for less than $ 10,000, it is best to save and pay for it in cash. You will avoid all financing costs. The money you would use in monthly installments will be used instead for maintenance costs, fuel, etc.
If one of your parents is ready to help you, he can probably make you a loan with a lower interest rate than those of merchants or banks.
He will ask you questions to build your borrowing profile and, with your consent, will check your credit report. Depending on the situation.
