Have you noticed that many private drivers rent a PCO car to join rideshare apps and at the end of the contract they both lose the car and the money they had paid weekly. This made PCO car hire companies to have a new idea which can help the driver to own a car after the contract is ended. In order to gain more information about this plan, called a rent to buy car plan, read this article carefully. We will also provide pros and cons of this program so that you can decide better if this plan suits you or not!
This article includes the following issues
- What is the rent to buy a car plan?
- Is it suitable to use a rent to buy car plan for Uber car rental?
- Pros and cons of using a rent to buy car program
- FAQs of rent to buy car plan
What is the rent to buy a car plan?
It is a good idea to pay a little more on weekly rental fees and own a vehicle after a few years. This is how you can save both money and car after the rental contract is ended. Let’s understand the rent to buy car scheme by an example:
Consider Alex is an Uber driver for the last two years and used an Uber car rental plan. He hired a typical vehicle and paid £150 as a weekly rental fee. After two years he paid £15600 (lost this money) and the contract is also over so he refunds the vehicle as well (lost it too!).
Now he has to rent a new car but suddenly he meets a plan called rent to buy a car which surprised him! By this plan, he paid a little more on weekly rental fees but after a few years (2 or 3) he not only lost his money but also owns a car. The money Alex paid these years, was actually the installment price of the car.
By this scheme, Alex pays £200 per week which means £31200 after three years. The weekly rent was £20800 and the money he paid for the vehicle was £10400. Considering a typical PCO car is £11000, he almost owns a car after 3 years. When the contract and the payments are over, the ownership of the vehicle will be signed to Alex!
Note that, this was just an example to make it easier for you to understand and the prices we mentioned might not be real at the time.
Is it suitable to use a rent to buy car plan for Uber car rental?
This is one of those frequently asked questions many people have and the answer is “absolutely”. All the cars in this plan are not only a suitable replacement on Uber car rentals but also you can receive the same free services on PCO car hires such as free MOT and servicing, tyre changes, uploading documentations on Uber, etc.
In other words, there is no difference between hiring an Uber car rental (or generally PCO car rental) or using a rent to buy scheme but paying a little more and owning the car at the end of the contract.
Pros and cons of using a rent to buy car program
After mentioning all you need to understand this program, there should be a clearer view to decide whether this is a good choice for you or not. This clearer view can be easily concluded by reading a list of advantages and disadvantages of the rent to buy car program.
- Owning the vehicle after the contract. You are sure that the vehicle is yours at the end and this makes you to be more careful and comfortable during the rides. The better point is that the car is a brand new one!
- Renting a car program is much easier than leasing a car.
- No interest is considered in this plan. What you pay weekly, as we calculated in the mentioned example, is the weekly rental fee+ the installment of the car price.
- You can receive all the free services as well.
- Choosing the vehicle is as flexible as the time you rent it.
- The contract length is often longer.
- Weekly payments go higher. (you may have to work for longer hours to make the money).
- Payments are frequently and it might make you tired of the contract.
FAQs of rent to buy car plan
Is rent to buy a car plan worth it?
Well, the answer depends on your view and goals! But to many, yes it’s totally worth it. At least you own a brand new car after the contract ends and your weekly payments were not useless.
How can I start with this program?
In order to join the rent to buy car program, you need to pay a joining fee, first week rental adding to the partial fee. The joining fee is required due as this plan is not a credit-based one!
Is insurance required for the rent to buy a car plan?
Joining a rideshare app requires insurance. Apart from that, any other vehicles on the road, need insurance as well. Then choosing the plan means using a car on the road so you definitely need the insurance. But, the good news is that most of the PCO cars in rent to buy plans contain valid insurance.
How is rent to buy a car different from leasing a car?
You will not receive any extra free services when you lease a vehicle while in using a rent to buy plan, you receive many free services including MOT, tyre changing, accident assistance, etc.
Is it possible to join a rent to buy car plan without credit background check?
Yes! As we mentioned, this is not a credit based plan so you don’t need to provide a credit background check. Your most credit is the weekly payments.
While renting a PCO car is the first option of many PCO drivers in London, plans that lead a driver to own a car can be welcomed warmly! As a result, a rent to buy car plan of the PCO car hire companies is one of the most popular ways to rent a car in the UK and own what you have rented after the contract. In this article we mentioned what this plan means by providing an example, reviewed the pros and cons of this plan and if this plan is a suitable replacement of Uber car rental plans or not. At the end we answered some of the FAQs in joining this program. We hope reading this article is helpful to all those PCO drivers in London who plan to own a car but can’t afford it.