In the fast-paced modern world, having access to reliable transportation is a must. Whether it’s for commuting to work from rural to urban areas, running errands, or simply taking a leisurely drive along South Africa’s scenic routes, having access to a car can enhance your quality of life.
However, it is clear that traditional car ownership models, which often require large upfront deposits and good credit scores, can be daunting and impossible to achieve for many South Africans.
While it is true that a good credit score can open up many opportunities for car buyers in the country, we here at We Rent Cars don’t believe that it should bar access to driving completely.
Our rent-to-buy subscription model offers a unique solution for those looking to get on the roads and improve their own credit score.
We Rent Cars are dedicated to transforming the landscape of car ownership in South Africa. Our mission is to create equitable and easy access to driving for everyone, regardless of their financial situation.
Let’s explore how rent-to-buy subscriptions can help improve your credit score.
Understanding Credit Scores in South Africa
Your credit score is a numerical representation of your creditworthiness. This number is calculated based on your general financial behaviour and creditworthiness. In South Africa, a credit score typically ranges from 300 to 850, with higher scores indicating better creditworthiness.
Credit scores are calculated using a variety of factors, including:
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Your payment history
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The amount of debt you have
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The length of your credit history
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The types of credit accounts you have
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Recent credit inquiries
When it comes to car ownership, and financing a traditional purchase of a vehicle in South Africa, a good credit score is crucial.
This is because your credit score influences your ability to obtain loans, and whether or not lenders and banks will risk providing you with the finances you need.
This is one of the major reasons why rent-to-buy subscriptions are gaining popularity, while traditional modes of car ownership are losing traction.
Rent-to-buy car subscriptions offer a strategic, financial alternative to obtaining access to a vehicle, while also providing customers with an opportunity to improve their own credit scores.
The Rent-to-Buy Subscription Model
Subscribing to the rent-to-buy model offers South African drivers with a unique approach to car ownership. It blends the flexibility of renting with the eventual benefit of ownership.
The popularity of this model is increasing as it provides an accessible and manageable path to owning a vehicle.
In a rent-to-buy car subscription, you enter into a contract with a dealership, like We Rent Cars for example, that allows you to rent a vehicle for a set period (usually ranging from one to several years).
During this period customers will need to make regular monthly payments that cover the cost of operating and driving the vehicle.
At the end of the rental term, the subscriber will be provided with the opportunity to purchase the car outright and gain ownership. This gradual payment structure makes the process of owning a car far more affordable and realistic for South African drivers.
Benefits:
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Accessibility
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Flexibility
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Inclusive costs
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Realistic path to ownership
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Affordability
The Positive Impact On Your Credit Score
Entering into a rent-to-buy car subscription can have a majorly positive impact on your credit score.
Let’s take a look at how this model influences various components of your credit score, and how you can leverage this to improve your general financial standing:
1. Timely Payments: By consistently making timely payments on your rent-to-buy subscription, you will demonstrate financial responsibility and reliability. Each on-time payment will be reported to South African credit bureaus, which will positively contribute to a good credit rating.
2. Credit History: Building a solid credit history is essential to having a good credit score. Rent-to-buy subscriptions offer a great opportunity for subscribers with limited or no credit history to start building a positive one. As you make regular payments, you establish a history of responsible credit use.
3. Credit Mix: Having a diverse range of credit types - such as credit cards, instalment loans, and rent-to-buy subscriptions, can positively influence your score. A rent-to-buy subscription adds to your credit mix by introducing an instalment-type account.
Get on the Road to Good Credit with We Rent Cars
Embarking on a rent-to-buy car subscription can be a game-changer for your credit score and overall financial health.
At We Rent Cars, we believe that everyone deserves the opportunity to drive and own a vehicle, regardless of their financial situation or credit history. That's why we offer rent-to-buy car subscriptions that do not require a credit check.
Whether you have bad credit or no credit at all, you can start your journey with us without worrying about your past financial struggles.
Contact a We Rent Cars agent today to get on the road tomorrow!