Frequently Asked Questions (FAQ) – Rent to Own
1. What is Car Hub Durban’s Rent to Own (RTO) Model?
Our Rent to Own model is a flexible path to vehicle ownership designed for individuals who may not qualify for traditional bank finance.
It works in three main stages:
- Rental Term: You enter into a fixed-term rental agreement with Car Hub Durban, making regular monthly payments.
- Full Maintenance & Insurance: Your monthly fee is comprehensive, usually including full insurance and a portion allocated for maintenance, giving you peace of mind.
- Ownership Transfer: At the end of the agreed term, upon making all required payments and fulfilling the contract terms, ownership of the vehicle is transferred to you for a pre-agreed final settlement amount (often R100.00 or a nominal fee).
2. Who Qualifies for the Rent to Own Program?
The RTO model is ideal for people who have difficulty securing traditional vehicle finance, including:
- Individuals with a low credit score or past debt defaults (poor credit history).
- Self-employed or commission-earning individuals who struggle to provide conventional proof of income.
- New or small business owners without extensive financial history.
- Those with limited or no credit history.
We focus on your current affordability, not just your past credit history.
3. What are the Initial Requirements and Costs?
To process your application and secure the vehicle, you will typically need:
- Initial Payment (Deposit): A non-refundable, upfront deposit is required to secure the vehicle and process the agreement. The amount varies based on the vehicle value and your individual risk profile.
- Documentation: A valid South African ID, driver’s license, proof of address, and proof of income (bank statements/payslips).
- Affordability Assessment: We conduct a thorough assessment based on your current income and expenses to ensure the monthly payments are manageable for you.
4. What is Included in the Monthly RTO Payment?
Car Hub Durban structures the RTO payment to be as comprehensive as possible, often including:
RENTAL FEE COVERS THE PRINCICAL VALUE OF THE VEHICLE OVER THE TERM. THE RENTAL FEE ALSO COVERS INETREST INCLUDINGE THE FOLLOWING:
| Component | Description |
| Comprehensive Insurance | Full vehicle insurance is mandatory and typically included in the monthly payment. |
| Vehicle Tracking | Installation and subscription fees for an approved tracking unit. |
| Annual Vehicle Licensing | License Plate (License Disc) |
| Maintenance/Warranty | Depending on the contract, a portion may be allocated for scheduled servicing and minor repairs, offering budgeting certainty. |
5. What Happens If I Default on a Payment?
We understand that circumstances can change. If you face difficulty making a payment:
- Communication is Key: Contact Car Hub Durban’s accounts department immediately. We aim to find a reasonable solution.
- Contractual Terms: Like any legal agreement, the RTO contract includes clauses regarding late payments and defaults. Continued non-payment may result in the repossession of the vehicle, as Car Hub Durban remains the legal owner until the contract is fulfilled.
- No Credit Record Impact (Usually): Since the RTO is a rental agreement (not a traditional credit agreement registered with credit bureaus), a default generally does not harm your credit score in the same way a loan default would. However, we may record the default in industry databases, which could affect future RTO applications.
6. Can I Cancel the Rent to Own Agreement Early?
Yes, the agreement can typically be terminated early, but specific conditions apply:
- Early Termination Clause: Your RTO contract will clearly outline the process and associated costs.
- Return of Vehicle: You must return the vehicle to Car Hub Durban in good condition (allowing for fair wear and tear).
- Settlement Fee: You may be liable for a settlement or penalty fee to cover any outstanding capital and administrative costs, as detailed in your signed contract.
7. Does the RTO Program help me improve my Credit Score?
The RTO payment itself does not directly build your credit score because it is a rental agreement and is not typically reported to credit bureaus as a credit facility.
However, successfully managing your RTO payments helps in a few indirect ways:
- It demonstrates financial discipline and responsibility over a long period.
- It frees up cash flow and allows you to manage other existing credit facilities, indirectly improving your overall credit health.