How Does the Rent-to-Own Process Work at Cars Financed? | Cars FinancedCars FinancedRent-to-Own
How does the rent-to-own process work at Cars Financed?
If you have heard about rent-to-own but are not sure what the actual process looks like, this post walks you through it from start to finish — every step, in plain language, with no surprises. Here is exactly what happens from the moment you enquire to the day you own your car outright.
Grace Klaas·7 April 2025·9 min read·Updated April 2025
The process at a glance
The rent-to-own process at Cars Financed is built to be as straightforward as possible. There is no bank approval to wait for, no ITC credit check, and no requirement for a perfect financial record. What we need to know is simple: can you afford the monthly payment, starting today?
From first enquiry to driving away typically takes a matter of days — not weeks. Here is the full picture before we go step by step.
Stage
What happens
Timeframe
Enquiry
You apply or make contact via carsfinanced.co.za
5 minutes
Affordability assessment
We review your income and documents
24–48 hours
Vehicle matching
We find a suitable vehicle for your budget
1–3 days
Pre-agreement statement
You receive and review the full contract terms
Same day
Signing
You sign the rental agreement
Same day
Handover
You drive away in your vehicle
Within days of signing
Contract term
Monthly payments over agreed term
54 or 60 months
Ownership transfer
Final payment clears — car is legally yours
End of term
Step-by-step: the full rent-to-own process
Let us walk through each stage in detail so you know exactly what to expect at every point.
1
Enquire
Getting started
You submit an enquiry or application
The first step is simply reaching out. You can apply directly through carsfinanced.co.za or contact Grace directly. There is no lengthy form and no commitment at this stage — just basic details about yourself, your income, and what kind of vehicle you are looking for.
This is also the right time to ask any questions you have about the process. We want you to go into this with a full understanding of how it works — not find out after you have signed.
Typically 5 minutes to complete
2
Assess
No credit check
Affordability assessment — not an ITC check
This is where rent-to-own differs most clearly from bank finance. We do not pull your ITC credit record. Instead, we assess your current ability to afford the monthly instalment — based on your income, your expenses, and your employment or business situation.
You will be asked to provide supporting documents at this stage (see the full list below). Our assessment is about where you are financially right now — not where you were two or five years ago.
24 to 48 hours for a decision
3
Match
Vehicle selection
We find a suitable vehicle for your budget
Once your affordability has been confirmed, we work with you to identify a suitable vehicle. The vehicle selected needs to fit comfortably within your approved monthly budget. We focus on used vehicles that represent good value and reliability for the term of the agreement.
You are not choosing blindly — you will know the make, model, year, mileage, and condition of the vehicle before anything is signed. If something does not feel right, say so. We would rather find the right match than rush you into something that does not suit your needs.
Typically 1 to 3 days
4
Review
Your legal right
You receive and review the pre-agreement statement
Before you sign anything, you are legally entitled to receive a pre-agreement statement and quotation under the National Credit Act. This document sets out — in full — your monthly instalment, the total cost of the agreement, the contract term, all fees, and exactly what happens if a payment is missed.
Take your time with this document. Read every line. Ask questions about anything that is not clear. You have the right to take it away and consider it before signing — do not allow anyone to rush you past this step.
Same day — no time pressure to sign immediately
5
Sign
The agreement
You sign the rental agreement
Once you are satisfied with the terms, you sign the rental agreement. This is the document that formalises the arrangement — it sets out your obligations as the renter, the provider’s obligations, the payment schedule, what happens at the end of the term, and the process for dealing with any payment difficulties.
Keep a copy of your signed agreement in a safe place. You may need to refer back to it during the course of the contract.
Signing typically takes under an hour
6
Drive
Handover
You take the keys and drive away
Once the agreement is signed and any initial payment is settled, the vehicle is handed over to you. From this point, it is yours to use — for work, for family, for daily life. You are responsible for keeping it insured, maintained, and roadworthy throughout the contract period.
Comprehensive car insurance is a requirement of the rental agreement. If you do not already have a policy in place, this needs to be sorted before or on handover day.
Handover within days of signing
7
Pay
Monthly payments
You make monthly payments over the contract term
Your monthly instalment is debited from your bank account on the agreed date each month — typically via debit order. The term is usually 54 or 60 months, and your payment amount remains consistent throughout. There are no rate increases linked to prime rate movements the way bank finance can have.
Throughout this period, the provider holds the legal title to the vehicle. This means you cannot sell the vehicle, use it as security for another loan, or make structural modifications without permission. In exchange, you have the right to uninterrupted use of the vehicle — provided payments are maintained.
54 or 60 monthly payments
8
Own
The finish line
Your final payment clears — and the car is legally yours
When your last payment clears, ownership of the vehicle transfers to you. No balloon payment. No additional fee. No surprise. The registration is updated into your name and you walk away with a vehicle you own outright — and the satisfaction of having got there without needing bank approval.
For many clients, this is also the moment when the door to traditional bank finance starts to open again. Five years of consistent payments — even outside the formal credit system — demonstrates financial discipline that matters.
End of month 54 or 60
What documents do you need?
The documentation requirements for rent-to-own are considerably lighter than those for traditional bank finance. Here is what you typically need to have ready when you apply.
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Valid South African ID document or passport — A certified copy is usually sufficient at application stage. The original may be required at signing.
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Proof of residence (not older than 3 months) — A utility bill, municipal rates statement, or bank statement showing your current address. Must be in your name.
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Three months of bank statements — Your most recent three consecutive bank statements showing regular income deposits and your typical monthly expenditure.
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Proof of income — For formally employed applicants, recent payslips covering the last one to three months. For self-employed applicants, bank statements showing business income may suffice in place of payslips.
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Contact details — A working cell number and email address. These are used for agreement communications and payment notifications.
Self-employed applicants
If you run your own business, work as a freelancer, or earn informal income, your bank statements are typically the most important document in your application. Three to six months of consistent income deposits — regardless of whether they come with a payslip — can be sufficient to demonstrate affordability. Speak to us about your specific situation before assuming you do not qualify.
How affordability is assessed
The affordability assessment is the core of the rent-to-own approval process. Rather than running a credit score through an automated system, we look at your actual financial picture — specifically, whether the proposed monthly instalment is sustainable given your income and existing commitments.
Here is the kind of calculation that typically takes place, using a simplified example:
Example affordability assessment — R8,500 take-home income
Estimated living expenses (food, transport, utilities)− R2,500
Available for vehicle instalmentR3,000
In this example, a monthly instalment of up to around R2,500–R2,800 would typically be considered affordable, leaving a reasonable buffer for unexpected expenses. An instalment that consumes every remaining rand after essential expenses would not pass an honest affordability assessment — and should not.
Honest affordability matters
The National Credit Act requires that credit providers — including rent-to-own providers — conduct a genuine affordability assessment before entering into an agreement. This is not a box-ticking exercise. It is designed to protect you from committing to payments you cannot realistically sustain. If an assessment suggests you are stretched, that is important information — not a rejection.
Your rights before you sign
Rent-to-own agreements in South Africa are regulated by the National Credit Act. This means you have meaningful legal protections at every stage of the process — before, during, and at the end of your contract.
Right to a pre-agreement statement
You must receive the full terms of the agreement — including total cost, fees, and payment schedule — before you sign anything.
Right to take time to consider
You cannot be legally pressured to sign immediately. You have the right to take the pre-agreement statement away and consider it before committing.
Right to honest cost disclosure
All fees, initiation costs, and the total amount payable over the full term must be disclosed clearly before you sign.
Right to Section 129 protection
If payments fall behind, the provider must follow the NCA process — including a Section 129 notice — before any repossession can occur.
Verify your provider
Any company offering rent-to-own vehicle finance in South Africa must be registered with the National Credit Regulator (NCR). You can check any provider’s registration status at ncr.org.za. Never enter into a rental agreement with an unregistered provider.
During the contract: what to expect month to month
Once you are driving and the debit orders are running, the day-to-day experience of rent-to-own is straightforward. Your monthly payment is debited automatically, you use the vehicle as you normally would, and the months tick toward the point where the car becomes yours.
There are a few responsibilities to keep in mind throughout the contract period.
Insurance is your responsibility
Comprehensive vehicle insurance is a requirement of the agreement, not an optional extra. You are responsible for maintaining a valid policy throughout the contract. If your policy lapses and you are involved in an accident, you may be in breach of your rental agreement on top of facing the uninsured cost of the damage.
Maintenance is your responsibility
The vehicle must be kept in reasonable condition. Routine servicing, tyre replacements, and minor repairs are your responsibility as the renter. Neglecting maintenance does not just damage the vehicle — it can affect the value of the asset at the end of the term and may constitute a breach of your agreement depending on its terms.
Contact us early if anything changes
If your financial situation changes — a job loss, a reduction in income, an unexpected large expense — contact us before a payment is missed, not after. The options available to you are far better when you communicate early. Once payments are in arrears and a Section 129 notice has been issued, the range of available solutions narrows considerably.
How ownership transfers at the end of the contract
The end of a rent-to-own contract is one of the most satisfying moments in the process — because it is the moment everything you have paid for becomes yours. Here is how the ownership transfer works.
When your final monthly payment clears, the provider initiates the transfer of the vehicle’s registration into your name. You will receive the title deed (registration certificate) confirming you as the legal owner. There is no additional payment required — no balloon amount, no buyout fee, no hidden cost. The agreement was structured from the outset to end with full ownership transfer.
You will need to ensure your vehicle’s licence disc is up to date at this point if it was last renewed under the provider’s name, and that all relevant paperwork reflects the ownership change. Keep all documents related to the transfer in a safe place.
What comes next?
Many clients who complete a rent-to-own term find themselves in a stronger financial position than when they started — with a vehicle they own, a cleaner spending track record, and in some cases a credit history that has improved through parallel debt rehabilitation. If bank finance is on your radar for your next vehicle, completing a rent-to-own agreement is a solid step toward making that a realistic option.
Frequently asked questions
How long does the rent-to-own process take at Cars Financed?
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The application and affordability assessment typically takes 24 to 48 hours. Once approved and a vehicle is matched, most clients are driving within a few days of their initial enquiry. The full contract term is 54 or 60 months, after which ownership transfers to you automatically.
What documents do I need to apply for rent-to-own?
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You typically need a valid South African ID or passport, proof of residence not older than three months, your three most recent bank statements, and proof of income such as payslips or consistent salary deposits. Self-employed applicants may be asked for additional evidence of business income.
Is there a credit check when applying for rent-to-own?
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No. Rent-to-own at Cars Financed does not require an ITC credit check. Approval is based on your current income and affordability — not your credit history. Buyers who are blacklisted, under debt review, or have judgements on their record are welcome to apply.
When do I actually own the car?
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Ownership of the vehicle transfers to you automatically once your final monthly payment has cleared at the end of the contract term — typically month 54 or 60. There is no balloon payment or additional amount due. The registration is then updated into your name.
What happens if I miss a payment on my rent-to-own contract?
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Contact Cars Financed as soon as you know a payment may be missed — before it happens if at all possible. Under the National Credit Act, the provider must follow a prescribed process before any action can be taken, which includes issuing a Section 129 notice. Do not ignore arrears. Early communication always produces better outcomes than silence.
Can I pay off my rent-to-own contract early?
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Early settlement terms depend on the specific agreement. Under the National Credit Act, consumers generally have the right to settle a credit agreement early. However, early settlement amounts and any applicable fees must be disclosed in your pre-agreement statement. Check your agreement and speak to us directly if early settlement is something you are considering.
Ready to start the process?
No credit check. No bank approval. Just an honest assessment of what you can afford — and a clear path to getting behind the wheel.
Grace is a vehicle finance and procurement specialist with over nine years of industry experience, based in KwaZulu-Natal. She is the founder of Cars Financed and graceklaas.com.
