How to make money legally as a driver without owning a car
New inventions are being made every day, a trend that is inspired by the growth of technology. The introduction of rideshare services, for instance, has transformed the taxi business. Today, most taxi drivers have taken up this new form of doing business and are reaping huge benefits. In very many ways, ridesharing is more viable than the traditional way of using a taxi.
While this business model has made an impact on its intended market, it has presented its fair share of challenges. As the demand to join this sector continues to grow, the cost of buying cars has become a stumbling block, as many drivers are facing the financial challenge of acquiring a vehicle to use for their ridesharing business. The conventional way of obtaining car loans has proved to be very expensive, especially considering that a car depreciates very fast.
That said, what are the options for potential rideshare drivers yearning for this income stream? There are several options including renting, leasing or borrowing from friends and family. Nevertheless, a rent-to-own car is one of the most convenient ways to join the rideshare business for aspiring drivers.
Understanding the rent-to-own car strategy
A rent-to-own car is an agreement between an individual and a car renting company which allows the individual to rent a car for a specific duration and in the end, buy it. It is a simple way of acquiring a car for someone with limited ability to obtain conventional car financing. Also, it includes a commitment to pay a weekly or biweekly fixed amount of money to settle the car’s purchase price.
If you have tried acquiring conventional financing to buy a car and failed, then this is probably the best option for you. It is a simple process and you will not need much money to get started.
Why should you go for rent-to-own?
While there are many ways to own a car, you might be wondering why you have to settle with only one option. Yes, there are several options to consider when looking to acquire a vehicle, but rent-to-own can be one of the best choices you ever make. If you are considering this option, this is why you need to grab this deal fast.
1. No credit score
When it comes to other traditional ways of acquiring car financing, financiers always consider your credit score. However, with a rent-to-own agreement, this is not an issue because you do not own the car until you finish paying the instalments. Hence, you can get a car and start working right away.
A rent-to-own car is not a loan or any form of credit. Therefore, when it’s time to get the car, you will not have to pay any interest charges. Also, though the payments are made over a long period of about two to three years, no interest will accrue. The weekly amounts are enough to guarantee the purchase of the car.
3. Free insurance
Most rent-to-own car contracts are inclusive of insurance charges. Therefore, you are free from paying insurance for your car throughout the payment period. If you are going to use the vehicle for ridesharing, then you will have more money in your pocket. Insurance is calculated into the repayment fee because the company retains ownership of the car until payment is made in full.
4. Nonpayment does not affect your credit score
In case you default on a payment for any reason, your credit score is not affected. Nevertheless, this will attract a small penalty, so we advise you always try to meet your payments on time.
The ultimate reason why you need to get a rent-to-own deal is the beauty of owning a car in the end. With a rent-to-own agreement, the goal is to help the individual own the car after meeting the purchase price. It would be, therefore, wise to take good care of the car so that in the long run, you can sell it if the need arises.
Rent-to-own cars in Melbourne can help you join the rideshare sector right away using a borrowed car, with the bonus of owning the car in the long run. Contact Keyz today for more information on rent-to-own cars Melbourne customers can count on and join a community of satisfied car owners near you.