Bad credit buyers in the Buckeye State need to know the differences between bad credit rent to own cars and car loans with bad credit.
What to do
If you’re reading this and you live in Ohio, there’s a good chance that you have bad credit and you need a car. If that’s the case, then you’ve come to the right place. Through our bad credit car loan web site at www.autonetfinancial.com, Auto Net Financial has helped hundreds of Ohio applicants just like you reestablish their car credit. You can begin the process simply by filling out our car loans with bad credit online loan application. Unlike tote the note car dealers, our dealer network offers second chance car loans that originate with lenders that report your payment history to the credit bureaus – allowing you to reestablish your auto credit and raise your credit scores at the same time.
But if you’ve never done this before, you need to be careful. Choosing a vehicle that’s too expensive can stretch your budget and result in repossession. If this happens, the only remaining choice for most auto loans for bad credit buyers is a Tote the Note, We Finance Everyone car dealer. It also means that rebuilding your car credit has to be put on hold for at least a year, since lenders who originate bad credit auto loans will only consider applicants with a repossession that’s more than a year old.
You also need to know the difference between Ohio special finance car loans and Ohio rent to own cars. Although both loans are made in the subprime market, there are marked differences between the two.
Ohio Rent to Own Autos
This is a loan that you take out at a rent to own car lot in The Buckeye State. It consists of a down payment plus a fixed number of loan payments. The loan payments are due every week and are usually made in person at the lot you rent the car from. You are renting the car from the company that owns it and if you fall behind on your rental payments, it is the rental company that you will talk to regarding other payment arrangements.
In addition, if you are unable to continue making payments, it is the rental company that will repossess the car. The company also has the option of whether or not to report your rental payment history to the credit bureaus. The rental companies that offer these services generally rent only used cars. Very rarely do they rent new cars and for, the most part, these rental companies are in no way affiliated with a franchised new car dealer.
Advantages: The rental cars are usually less expensive. Many Ohio residents prefer to make payments on a weekly basis. Rental payments are made face to face so you know your agent personally and they know you personally. Many of these rental companies don’t bother with a credit check before renting you a car.
Disadvantages: Most rent to own companies in Ohio do not report your rent payments to the credit bureaus. The cars offered for rent are usually older and have high mileage and, as a result, some of these cars are not that reliable. For most people, it is not convenient to visit the company every week to make a payment. Rental terms usually range from 12 to 24 months, limiting the amount of the rental agreement to lower-priced older cars.
Ohio Bad Credit Car Loans
This type of loan, sometimes called a second chance car loan or a credit repair car loan, is usually available only through an Ohio franchised new car dealer. The car that you are financing can be either a new car or a newer used car. Although the dealer sells you the car, the finance contract is sold to a lender. There is normally a down payment plus a fixed number of loan payments. The loan payments are made to the lender once a month, either by mail or by electronic debit from your bank account.
Since the bank holds the finance contract to your car, any issues of payment or non-payment are made with the bank. Most of these car loans with bad credit lenders will also report your payment history to the credit bureaus.
Advantages: Reporting your payment history to the credit bureaus is important if you are trying to reestablish your auto credit and eventually re-enter the prime loan market in The Buckeye State. The selection of vehicles from a new car dealer is greater. The vehicles are, generally, either new with no miles or newer used vehicles with lower miles. Loan terms start at 24 months and can extend to as many as 60 months, giving you a wider choice of vehicles to choose from.
Disadvantages: Not all Ohio franchise car dealers offer this service and the level of experience and expertise in dealer special finance departments can vary widely. The selling price of the cars is usually higher, due to newer vehicles and lower mileage. Interest rates are still high, due to the nature of the loans. Any problems with repayment will be reflected in your credit report and your FICO score.
As We See It
If you live in The Buckeye State and are interested in cheap transportation that doesn’t require a credit check, then the rent to own cars dealer wins. However, if you are seriously interested in repairing and re-establishing your credit, the special finance loan is the better choice. Here at Auto Net Financial, we have helped thousands of customers re-establish their credit while driving dependable new or newer used vehicles. To avoid the disappointment of not finding a dealer that offers a professional approach to special finance bad credit car loans, simply visit us on the web at www.autonetfinancial.com.
If you are serious about getting your credit back on track, you can begin a new chapter in your life by filling out our bad credit car loan application now.
