Credit scores and Rent to Buy cars

Understanding Credit Scores

Basics of Credit Scores: Credit scores, ranging typically from 300 to 850, are vital indicators of creditworthiness. According to Experian, a score below 670 is considered subprime. This distinction is critical in car financing decisions.

Your credit score doesn’t just affect loan approval; it also influences the terms of the loan. A lower score can translate to higher interest rates.

Rent to Buy Cars Explained

 Rent-to-buy offers an alternative path to car ownership, especially beneficial for those with lower credit scores. Unlike conventional loans, these agreements often focus more on income stability than credit history.

Impact of Credit Scores on Rent to Buy Agreements

While rent-to-buy dealerships may be more accommodating, a 2019 survey by the National Rent-to-Buy Association (NRBA) found that a moderate credit score can still affect the rental terms and options available.

However, at SA Motor Lease, we provide the same great price for all clients, regardless of credit scores.

Strategies for Individuals with Lower Credit Scores

Improving Credit Scores: Boost your credit score by paying bills on time, reducing debt, and checking your credit report for errors.

Managing Financial Health for Long-Term Benefits

Effective budgeting is key. The South African Financial Planning Handbook advises allocating no more than 20% of your monthly income to car expenses.


While a lower credit score can be a hurdle in traditional car financing, Rent to Buy agreements open a window of opportunity. By understanding your options and employing sound financial strategies, car ownership can be a realistic goal.

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