What is the rent-to-purchase model?

In the current market, rent-to-purchase models are basically 3+0 and 4+0, which means users are directly allowed to rent a car. After 3 to 4 years, the rent has basically paid off the price of the car, and the car is owned by the user. Generally speaking, rent-to-purchase can be understood as an installment loan. Although the model is similar, the nature is completely different.

For loans, you mainly sign a contract with a bank, the manufacturer's financial institution, or a 4S store or a secondary dealer. The ownership of the vehicle will be owned by the customer from the time the contract takes effect. Unlike rent-to-purchase, the vehicle ownership remains in the hands of the dealer or financial institution before the transfer, and the right to use and ownership are separated.

Industry insiders believe that compared with traditional mortgage car purchases, leasing to purchase is more flexible. Not only does it save a large amount of car purchase funds in the early stage, but it also lowers the threshold for car purchase. Many people who have overdue records lead to poor personal credit, or have no house under their name, or have special jobs and cannot issue work certificates, have been rejected by banks and other financial institutions for loans. Consumers can apply for rent-to-purchase services through car rental companies. At the same time, rent-to-purchase can obtain a car rental company's license, so it can solve the problem of difficulty in obtaining a license in cities with purchase restrictions.

At present, the credit risk of rent-to-purchase has become the biggest hidden danger in the industry. The main hidden dangers of rent-to-purchase are the separation of property rights and use rights and the division and assumption of accident liability. For consumers, the main issues are cost and usage. At the same time, they should also pay attention to the risk that the leasing company will not transfer the property after the full payment is due at the end of the contract. Rent-to-purchase is not suitable for most people. Consumers who have been refused loans by banks or have poor personal credit and are under too much personal financial pressure in the early stage can consider it. However, those with a stable job income should still be cautious when choosing rent-to-purchase.