7,000 Miles of Wind, Pavement, Rent-to-Buy—and ½ a Million Bucks

Here at Rent-to-Buy, we’re big fans of motorcycles. We think everyone should lease one, should buy one, or even own one—whether it’s a Harley, a Kawasaki, or a Honda. Just get on your bike and go!

That’s why, coming soon, Rent-to-Buy will launch a brand-new rent to own category: Motorcycles! Rent or lease your motorcycle through Rent-to-Buy, and you’ll be able to own your own bike before you know it.

And to celebrate the new section of our website, we’ve proudly become a sponsor of the Hoka Hey Motorcycle Challenge—the grueling, amazing, incredible motorcycle race extending 7,000 miles—from Key West, FL to the Kenai Peninsula in Alaska—starting on June 20th, 2010. The race raises funds for US veterans and soldiers’ families in need, and the winner comes back with $500,000.

Yes, $500,000. That’s a lot of hogs.

We’re so excited about motorcycles and the challenge, we’re sending one Rent2Buy employee to ride in the race. And through our partnership with Eagle Rider (the largest motorcycle tourism company on earth), you can rent your own bike to ride in the race—of course, with option to buy. That means that if you get attached to your bike over all that pavement, you don’t have to give it back to us. You can just buy it, and ride it home.

(Just a technical note: the challenge is only for Harleys—specifically, Harley-Davidson™, V-Twin, air-cooled motorcycles; no V-Rods or Victory’s allowed.)

So rev your bike engines, freedom riders—and get ready to rent-to-buy!

Pros and Cons of Rent-to-Buy/Rent-to-Own and Real Estate (Part 2)

On yesterday’s Rent2Buy blog, we explored some (but not all) of the benefits of the rent-to-buy (or lease-to-buy, or lease-to-buy / lease-to-own) relationship. Today, I wanted to start looking at some of the downsides.

It’s a Buyer’s Market
We might be inching out of the recession, but we’re still in bad times. And bad times means a buyer’s market for real estate. Meanwhile, mortgage rates are at their lowest since the 1950s; it makes sense to expect them to rise down the road.

The combination means that now is an ideal time to buy a piece of property, rather than waiting. Prospective property buyers may want to strike while the market is hot—instead of pushing off a property purchase through a rent-to-own  / lease-to-own deal.
 
If it is a Seller’s Market…
Of course, in some locations, property value is still going down. If you think property value in your area is decreasing, you may be eligible for a better deal when the market hits bottom.

If your rent-to-buy (or rent-to-own, or lease-to-own) contract locks you into a buying price down the road, you might end up paying more for the house than the market value will be when the rental term finally ends.
 
Not for the Less Resolute
Rent-to-own contracts often include option-to-buy fees (which can run into the thousands of dollars). The rent-to-buy relationship can also include rent premiums (which go toward a home down payment).
 
If you’re seriously considering purchasing the rental property down the road, the extra fees are the price to pay for the benefits that lease-to-own / rent-to-own deals have to offer. But if you don’t really think a purchase down the road will be likely (or feasible), the additional fees might turn out to have been money unwisely spent.
 
Not for the Very Long-Term
Rent-to-buy options can make sense on, say, a two- to four-year horizon. Much beyond that, the extra fees and rent premiums may not make sense—and it may make more sense to continuing renting (or buying a cheaper property) while you’re saving for the home or office space of your dreams.
 
On a related note—when you’re trying to calculate what kind of mortgage you’ll qualify for and whether you’ll be able to pay the down payment at the end of the rental term, be honest with yourself. Again, you don’t want to arrive at the end of the term—only to realize that you can’t buy, and that the extra expenses of the rent-to-buy option had been for naught.
 
For many people, the benefits of rent- / lease-to-buy / own make the rent-to-buy option make a lot of sense. For others, rent-to-buy (or specific types of rent-to-buy relationships) aren’t quite worth it. At the end of the day, the best advice is to honestly understand what you can afford, and what you really want out of the deal.
 
When we revisit rent-to-buy and real estate, we’ll explore the pros and cons of rent-to-buy for the seller/property manager.

Pros and Cons of Rent-to-Buy/Rent-to-Own and Real Estate

For the next few blog posts, I’d like to explore the benefits and drawbacks of renting real estate with the option to buy. Today: the pros for the renter/buyer.

• Try it before you buy it. When you’re investing in a new home or a new business space, you don’t want surprises. Surprises may include poor house construction, noisy neighbors, basements that flood easily, or bad plumbing (but there’s really no end to the possible unpleasant surprises in real estate). Renting to buy helps eliminate surprises—because it gives you the option to spend a good amount of time in a property before you make your final purchase. You get to try it before you buy it.
• Get your credit in order before you buy. If you don’t have the strong credit you need for a home loan—but still want to settle into a house—rent-to-buy options give you the opportunity to live in the home of your dreams, while you work toward improving your credit. When you do have stronger credit, you can get your loan—and pay the down payment on the home you’ve been living in all the while.
• Rent goes toward your down payment. Speaking of down payments—in many rent-to-buy agreements, your rent counts toward your down payment if you do choose to buy. At least in theory, this means that with rent-to-buy plans you could end up spending less than you would have had you chosen to rent and then pay the down payment for a different property.

Those are a few thoughts on the pros. Next up—the downsides for the renter/buyer…

Rent2Buy : the Concept

Hertz Acquires Automoti.com, Car Sales Technology!

Online Provider of End-to-End Technology Solutions for Hertz Fleet Sales

Press Release

CONTACT: 888-386-6660

Source: The Hertz Corporation
On Monday August 17, 2009, 1:46 pm EDT
Companies:Hertz Global Holdings, Inc.

PARK RIDGE, NJ–(Marketwire – 08/17/09) – Hertz Global Holdings, Inc. (NYSE:HTZ – News) announced it has acquired the assets of Automoti Group, Inc., an online marketplace for consumers to directly purchase used cars at discounted prices. Automoti’s end-to-end solutions are currently utilized by the Hertz Rent2Buy program which enables consumers to rent a car for up to three days prior to purchase. Terms of the acquisition were not disclosed.

Mark P. Frissora, Chairman and Chief Executive Officer of Hertz, commenting on the acquisition, said, “A key element to Hertz’s reengineering has been its fleet sales, with an overall strategy of diversifying the sales channels used to sell vehicles. Automoti.com provides user-friendly technology that will enable Hertz to leverage an e-commerce platform to further develop our Rent2Buy program. By acquiring Automoti’s technology, we will now own the best online car sales system, enabling Hertz to pre-sell vehicles while still on rent which will increase the revenue earned per vehicle sold.”

The transaction provides Hertz with the rights to the Automoti website and technology platform and intellectual and tangible property pertaining to the platform.

John Thomas, Executive Vice President, Global Supply Chain Management of Hertz, said, “Hertz’s newly developed Rent2Buy program is a fast-growing retail sales channel designed to be customer friendly, with a 3-day, try-before-you-buy test drive. Through Hertz Rent2Buy, we can extend our product offering by providing customers with a financially attractive solution for purchasing late model used vehicles in a simple, streamlined way.”

Car buyers interested in a quality, used vehicle simply need to select and reserve a vehicle of their choice for up to three days at www.hertzrent2buy.com. If the customer decides to buy the car, they keep it, complete the purchase process and the rental cost is credited against the purchase price of the car. If the customer decides not to buy the car, they return it to the renting location and the transaction is treated like a standard rental. Hertz Rent2Buy provides customers with substantial savings off of retail prices and a no hassle, one price buying experience. Hertz Rent2Buy is currently available in 8 states: Alaska, California, Florida, Hawaii, Illinois, Massachusetts, New Jersey, and New York, the Company plans to quickly expand the program to other states in the coming months.

The Hertz Corporation (www.hertz.com), a subsidiary of Hertz Global Holdings, Inc. (NYSE:HTZ – News), is the world’s largest general use car rental brand, operating from approximately 8,000 locations in 145 countries worldwide. Hertz is the number one airport car rental brand in the U.S. and at 42 major airports in Europe, operating both corporate and licensee locations in cities and airports in North America, Europe, Latin America, Australia and New Zealand. In addition, the Company has licensee locations in cities and airports in Africa, Asia, and the Middle East. Product and service initiatives such as Hertz #1 Club Gold�, NeverLost� customized, onboard navigation systems, SIRIUS Satellite Radio, and unique cars and SUVs offered through the company’s Prestige, Fun and Green Collections, set Hertz apart from the competition. In 2008, the Company launched Connect by Hertz, entering the global car sharing market in London, New York City and Paris. Hertz also operates one of the world’s largest equipment rental businesses, Hertz Equipment Rental Corporation, offering a diverse line of equipment, including tools and supplies, as well as new and used equipment for sale, to customers ranging from major industrial companies to local contractors and consumers from approximately 350 branches in the United States, Canada, China, France and Spain.