Rent To Buy Online – Monzi Explains What You Need to Know

Do you want to rent to buy? Monzi’s here to explain all you need to know. Looking for an alternative? You can apply for personal loans from $300 to $10,000 through Monzi’s lender-finder service. Easy applications. Fast outcomes. Apply today.

Please note, certain ideas and products presented in this article may not be offered by Monzi nor the lenders we work with. This article presents only general information. Consider seeking professional financial, taxation, legal or other advice to check how the information and ideas presented on this website relate to your unique circumstances.

What does rent to buy mean?

So, first things first, let’s break down what it means to rent to buy.

In short, rent to buy agreements allow you to rent items that you need today but don’t have the funds to buy outright. For instance, you may be able to rent a new fridge or washing machine. Often, this will be for a fixed period (e.g. 12 months) over which you will need to make weekly or monthly rent payments.

At the end of your rental period, you may then be offered the option to purchase the product for a fee. In some cases, rental agencies may offer buyouts from as little as $1. Although, this will vary based on the rental agency and the item that you are renting. If you opt not make the purchase, then the product will simply be returned to the company.

While that covers the basics, there’s more that you need to know. Read on as Monzi breaks it down for you. Let’s go.

Rent to buy: consider a personal loan instead

Hi, we’re Monzi.

We’re an Aussie lender-finder service that may make it easy for you to find lenders online in a quick and hassle-free manner. In short, all it takes is one application. From there, we take over and scan our network of lenders to try and find one that may be willing and available to assess your application.

With Monzi, you can apply from $300 to $10,000. If approved, you may receive the cash in your account before you know it. This money can then be to cover a range of personal expenses. As a result, renting to buy isn’t necessarily your only option when you’re short on cash but need to make an emergency purchase.

However, remember that there are costs associated with borrowing money. All loans will come with interest and fees, so you’ll always repay more than you borrow. Given this, weigh up the pros and cons before deciding what’s right for you.

Is it a good idea to rent to buy?

In short, Monzi cannot provide advice that is relevant to your situation. Instead, we’re simply here to outline all you need to know about renting to buy and how it works. Given this, we cannot say whether it is a good idea for you.

At the end of the day, it’s up to you to determine what’s best for your situation. With this, you’ll have to evaluate your options, the costs involved as well as your current budget. From there, you can make an informed decision as to how you can get the new fridge, washing machine or phone that you need.

If you decide that you’d prefer an alternative, then why not consider a personal loan. Apply with Monzi today from $300 to $10,000. Get your cash upfront and make repayments until the balance of your loan is paid off. Sounds good, right?

Apply today.

Can I rent to buy with no credit check?

Yes, possibly.

Renting to buy can often be an option for borrowers with bad credit who may be unable to access finance through retailers. This is because rental agencies may not conduct a credit check as part of your application. Instead, they’ll look at your capacity to afford the associated rent payments.

Having said this, Monzi cannot guarantee if a credit check will occur. In short, rent to buy agencies may conduct these checks on certain occasions. As a result, it may depend on the organisation you are dealing with.

What about if I have bad credit?

Yes.

Rental agencies may look at more than just your credit score if you are looking to rent a new appliance, phone or other such items. In fact, they may not conduct a credit check at all. As a result, in some cases, renting to buy can be an option if you’ve got poor credit. Although, they do retain the right to conduct credit checks where they see fit.

In addition to this, if your credit isn’t the best, then you could potentially apply with Monzi. In short, we work with a network of understanding lenders who may be able to look past your credit. As a result, you may be able to access cash for bad credit borrowers from $300 to $10,000 with just one application. However, approval is not certain.

Can I use rent to buy services on Centrelink?

Yes, potentially.

If benefit payments account for a portion of your income, you may still be able to rent an item that you need. However, for this to be possible, you must demonstrate that the rent payments would be affordable for your budget. If you cannot do this, then you will not be approved to rent the item.

In addition to this, if you do receive Centrelink benefit payments, then there may be support available that may be more appropriate than a personal loan or rental agreement. For instance, the No Interest Loan Scheme provides accessible finance for low-income earners. So, do your research to determine what may be available for you.

How much does it cost to buy after renting?

After renting an item for a certain period (e.g. 12 months), you may be offered the option to purchase it for a fee. In some cases, rental organisations will offer buyouts from as low as $1, given the rental payments that you would have already made.

However, prices may vary. As a result, Monzi cannot say how much an item will cost to buy. There are a number of factors involved (e.g. age of the product) and the buyout cost will ultimately be determined by the company you are dealing with. So, contact them or consult your contract to find out the possible costs.

Do I have to pay a deposit?

No, you may not need to pay a deposit.

In most cases, rent-to-buy products will be offered with no upfront payment. Instead, you’ll just have to make your regular rental payments on a weekly or monthly basis.

However, policies may vary. As a result, Monzi cannot guarantee if you will have to pay a deposit. It will simply come down to the terms offered by the company you are dealing with.

One way to pay nothing upfront on the purchase of a new fridge or phone could be to apply for a personal loan instead. You can borrow up to $10,000 and have your costs divided into a series of manageable repayments over 12 to 24 months. Best of all, you’ll own the item outright from the get-go.

Apply with Monzi today.

How long do I have to rent for?

In short, Monzi cannot say.

Rental periods may range from just a few months up to a few years, depending on several factors (e.g. the product). Moreover, while some may be fixed, others will be flexible. In other words, you can simply rent the product until you no longer need it. At that point, you can return it.

However, ultimately, how long you must rent an item for will depend on the organisation you’re dealing with. As a result, ensure you read all the terms and conditions before agreeing to anything. That way, you’ll know exactly what options are available to you.

What are the benefits of rent to buy?

While it may not always be a perfect option, renting to buy can prove to be beneficial in some situations.

Firstly, if you need a replacement appliance (e.g. a new fridge or washing machine), but don’t quite have the cash to cover the cost of a new one, then renting can be a handy solution. For just a small weekly or monthly payment, you can have a new appliance delivered to your door today. Best of all, you’ll have the option to buy it once your rental period ends too.

In addition to this, rental agencies may not run a credit check as part of your agreement. As a result, rent to buy may be an option if you have bad credit that would limit your ability to obtain traditional finance through a retailer.

Finally, agencies may offer flexible contracts. In other words, while you may have the option to purchase the item once the rental period ends, there isn’t necessarily an obligation. Moreover, if you no longer need the item, then it may be possible to return it.

What are the drawbacks?

In short, the downsides typically relate to the costs. Via fees and interest, you may end up paying significantly more for the item than what it’s true value is. Obviously, though, the trade-off is that you receive the item today.

As a guide, you may be charged fees on late payments as well as if you decide to return the item before the end of your agreed rental period. In addition, damage to the item may result in a fee being charged too. However, different organisations may vary in what you are charged.

Ultimately, you will usually save money if you delay your purchase until you can afford to buy the item. However, we understand this isn’t always possible.

If you’re after an alternative, then consider applying for a fast cash loan approved online with Monzi. We may match you with lenders offering loans fast from $300 to $10,000. Apply now.

What items can I rent to buy?

Ok, let’s cover the key issue. What can you rent?

In short, there are a host of rental agencies who may offer a vast array of products for you to rent. To give you an idea, we’ve assembled a quick list of some of the most common products. Check it out:

Phones

Most of us can’t live without a phone. Not only are they our primary source of communication, but they also provide entertainment, payment options and information right there in the palm of your hand.

Unfortunately, though, phones don’t come cheap. A new iPhone can potentially set you back hundreds of dollars. If you don’t have the necessary cash on hand, then one option could be to investigate rent to buy phones.

In short, you’ll get the new phone you need while making rental payments weekly or monthly. Best of all, once your rental period ends, you may have the option to purchase it outright.

Appliances

Need a new fridge? Maybe your washing machine has broken down?

White goods and new appliances are arguably the most common item that Aussies just like you rent to buy. After all, it’s understandable if you don’t quite have the cash on hand to cover the significant costs involved with purchasing new appliances.

In any case, rather than renting, why not consider a personal loan? You can borrow the money you need and purchase your new white goods outright today. Then, just make your repayments until the balance of your loan is paid off.

Laptops

Whether you’re going back to study or need a new laptop for work, there may be companies able to offer you the option to rent a new computer. As a result, you won’t have to outlay the significant costs upfront. Instead, you’ll just have to make regular rent payments over the period of your lease.

Furniture

From a TV cabinet to a comfortable new couch, if you need new furniture but can’t afford to purchase it outright, then you may be able to rent it instead. As a result, you can avoid the eye-watering costs and make rental payments as you go. If you’re in a rent to buy agreement, then you can potentially purchase it down the line for a fee.

Rent to buy a house

Purchasing a new home is the most significant financial commitment that you will make in your life. While you could take out a mortgage, there may also be rent-to-buy home options. However, before applying, think long and hard about it and consult an expert. Never enter an agreement unless you are certain that it is right for you.

new fridge using rent to buy

Is rent to buy legal in Australia?

Yes.

Some companies may offer appliances and other items that you can rent. With this, you may have an option but not an obligation to purchase the item after you’ve rented the item for a predetermined length of time.

However, be aware that in some cases, you will be required to purchase the item once the period has elapsed. As a result, you must take care before you enter any agreement. Ensure that you have read the terms and conditions so that you know exactly what you are signing up for.

How does rent with an option to buy work?

In short, this is relatively straightforward and has been prominent in our discussions so far. Renting with an option to buy means that once the period of your lease has elapsed, you’ll be given the option to purchase the item for a fee. As a result, you will then have full ownership.

However, as it’s only an option, you’re under no obligation. If you no longer need to rent the item and would not like to purchase it, then that’s OK. It will simply be returned to the rental organisation. Simple, right?

To make this clearer, let’s look at an example. Let’s say you rent a fridge with an option to buy. After two years, your rental period ends and you decide that you want to own it outright. In some cases, rental companies offer buyouts from as little as $1. As a result, you pay the fee and the fridge is now yours.

Is it better to rent or buy?

Unfortunately, Monzi cannot answer this question for you. After all, it will depend on factors that are unique to your financial situation. As a guide, this may include your income, savings, expenses, employment status and any outstanding debts that you have.

On the one hand, renting is an accessible option if you don’t have the necessary cash to buy an item outright. Instead, you’ll simply need to make a series of on-going payments for the time you possess the item. Usually, these payments will be made on a weekly or monthly basis.

On the other hand, if you have cash available and can afford it, then buying is often the better choice. After all, you’ll own the item outright and won’t have to make any on-going repayment. However, we understand that for financial reasons, this isn’t always possible.

Ultimately, while both have their benefits, the option that’s best for you will depend on your financial situation. As a result, it’s up to you to decide.

Can I end my rent-to-buy contract early?

Yes, this may be possible.

If, for example, you have agreed to a 12 or 24-month contract but no longer wish to rent the product, then you may be able to end your contract. However, you may need to pay a fee or the remaining value of your contract to get out of the agreement.

Having said this, these are only two possible options and Monzi cannot guarantee what costs may be associated with cancelling your contract early. As a result, you must contact the relevant company or review your contract to determine what you must pay.

Will my rent to buy application be approved?

Unfortunately, Monzi cannot say.

If you apply for a rent-to-buy contract, then the rental agency will conduct a preliminary assessment of your application. In other words, they’ll typically look to ensure that you receive sufficient income to cover the associated rent payments. With this, you will not be approved if the payments would not be affordable for your financial situation.

In many ways, this is similar to fast cash loans offered online. If you apply with Monzi, then we will aim to match you with a lender fast. If this occurs, then your lender will conduct an assessment to determine if the loan you’ve applied for is affordable for your budget.

As a result, approval is not certain. However, a quick loan with fast approval may be an alternative if you decide that you would rather not rent to buy.

Rent to buy in Perth

Are you living in the beautiful capital of Western Australia and looking to rent a new phone or computer?

While Monzi cannot say who may be able to offer you these products, you can rest assured knowing that there may be many companies willing to help. Not only that, it doesn’t matter where you are. Some rental agencies may offer services Australia-wide.

So, whether you’re in Perth, Melbourne or even outside the major cities, do you research to determine the options available for you. However, remember that your application isn’t guaranteed to be approved.

What about buying to rent?

While we’ve discussed renting to buy extensively, buying to rent is a different concept entirely. In short, it refers to the action of purchasing an item (e.g. a home) with the sole purpose of leasing it. As a result, it’s an investment with returns generated via rent payments.

Given this, buying to rent will typically only be an option for individuals in a strong financial position. For instance, it’s a common practice when it comes to investment properties.

In any case, rent payments can be a handy side income that requires little work. As a result, if you can afford it and find a viable option, then buying to rent may be worth exploring as an investment to diversify your income. However, do your research first to determine if it is right for you.

Does Monzi offer rent to buy options?

No.

As we’ve already mentioned, Monzi is a lender-finder service. As a result, we cannot offer rent-to-buy options that you may use to purchase a car, phone, television or any other product. Instead, we may be able to match you with an Aussie lender offering quick cash loans today.

In short, these loans may be alternative to rent to buy schemes. With Monzi, you can apply for loans from $300 to $10,000. Moreover, you’ll be able to divide the costs over a period ranging from 12 to 24 months. However, any money you borrow must be repaid with interest.

Ultimately, a personal loan could be one option to help access the cash you need to make a purchase today. Use Monzi’s loan slider at the top of the page to apply now.

Am I eligible to apply with Monzi?

If you opt for a personal loan over renting to buy, then Monzi can potentially match you with lenders in a quick and convenient manner. However, before you apply, you must make sure that you meet our four eligibility criteria. See below for more details:

  • At least 18 years of age.
  • Australian citizen or permanent resident.
  • Have a current contact number and email address.
  • Hold an online bank account with at least three months of history.

If you check these four boxes, then you’re ready to move onto applying. Read on to find out more.

How do I apply?

Monzi has made applying simple. With just a few clicks here and a few details there, you can have it completed in minutes. As a result, you can potentially get on with your day sooner. It really is as easy as can be.

So, when you’re ready to apply, just follow these steps:

  1. Use our loan slider to select your loan amount and repayment term. Note that loans from $300 to $2,000 come with fixed, 12-month repayment terms.
  2. Complete our application form by entering the required personal and financial details. Then, hit submit.
  3. Take a break while Monzi searches for an available lender that may be willing to assess your application. Apply during business hours and this could take as little as 60 minutes.
  4. If we match you with a lender, then they will take over and will contact you to begin the assessment process.

Can Monzi offer personal loans for bad credit?

At Monzi, we don’t offer loans under any circumstances. That’s because we’re a lender-finder service. As a result, we aim to match you with top-tier Aussie credit providers in a quick and stress-free fashion.

With this, the lenders that we work with are often understanding of your situation. As a result, if you’ve got bad credit, then that may not be the be-all and end-all of your application.

In short, lenders may look at the bigger picture. While they may take your credit into account, they will often assess your current financial situation too. As a result, if you’ve got your budget under control, then you may still be considered for approval, even with a few mistakes in your past.

However, lenders retain the right to approve or deny applications at their discretion. While some may be willing to consider bad credit applicants, others may not. As a result, your lender will ultimately determine your outcome. In other words, Monzi cannot provide any guarantees.

Can I use a personal loan to purchase new appliances or technology?

Yes.

In most cases, you can spend personal loans like cash. As a result, they can cover most expenses that you encounter. So, if you’re in the market for a new fridge or washing machine, then a personal loan could be one alternative to renting to buy. You can access the cash you need today and divide the costs evenly over the coming months and years.

Again, though, you must weigh up your available options. In other words, consider your budget as well as the terms offered on both cash loans and rent-to-buy agreements. From there, you can decide which is most suitable for you. A quick way to assess your budget could be to use Moneysmart’s free budget planner. Check it out today.

If you decide to choose a personal loan, then why not apply Monzi? We may match you with a lender offering cash loans up to $10,000. Apply today.

Contact us

While we’ve done our best to explain how you can rent to buy, we understand that you may still have questions. So, if you’ve got any queries about Monzi and what our lender-finder service entails, reach out.

Just email us at hello@monzi.com.au today and one of our friendly customer service team members will get back to you ASAP. However, keep in mind that we do only monitor this account during business hours.

Finally, remember that Monzi cannot speak specifically regarding rent-to-buy services and the options available to you. Instead, you must do your research to determine what’s best for your circumstances.

Rent to buy? Apply for a personal loan today!

Do you think that a personal loan could be an option for you?

Apply with Monzi now. Access cash loans from $300 to $10,000. You might be matched with a lender before you know it.

Fast, easy and hassle-free. With Monzi, that’s how it will be.

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Factor In

Costs

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You won't use a penny to apply for our lender-finding service, but here's some costs you could expect from a lender

Loan amount

$300 - $2,000

Terms

12 months

Costs

20% upfront establishment fee

+ 4% monthly fee

Example

Loan Amount of $1,000 over 6 months repayable weekly (25 weekly repayments). $1,000 (Principal Amount) + $200 (20% Establishment Fee) + $240 (fees based on 4% per month over 25 weeks) = $1,440 total repayable in 25 weekly installments of $57.60.

Under the current legislation, most small personal loan providers don’t charge an annual interest rate (you’ll know this as an APR) %. The maximum you will be charged is a flat 20% Establishment Fee and a flat 4% Monthly Fee. The maximum comparison rate on loans between $300 and $2000 is 199.43%. This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate

Loan amount

$2,001 - $4,600

Terms

13 months

24 months

Costs

48% annual percantage rate

67.41% comparison rate p.a.

Example

Loan Amount of $3,000 over 18 months repayable weekly (78 weekly repayments). $3,000 (Principle Amount) + $400 (Establishment Fee) + $1,379.06 (reducing interest) = $4,779.06 total repayable over 18 months with weekly installments of $61.27.

The Interest Rate for Secured Medium Loans is 48%. The Typical Comparison Rate is 67.41% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.

Loan amount

$5,000 - $10,000

Terms

13 months

24 months

Costs

21.24% annual percantage rate

48% comparison rate p.a.

Example

Loan Amount of $10,000 over 24 months repayable weekly (104 weekly repayments). $10,000 (Principle Amount) + $5,577.12 (Interest) = $15,577.12 total repayable over 24 months with weekly installments of $149.78.

The Interest Rate for Secured Large Amount Loans is 48%. Maximum Comparison Rate is 48% p.a. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Click here to see a worked example.