Rent to Own Trailers: Frequently Asked Questions

When you’re considering a rent to own trailer, you may have questions. Questions about how the agreement works, what is the difference in renting versus financing, and more.

We’ve explained the most common questions below. We’ve also provided a sample rent to own trailer payment calculation to help you understand the fees associated with each monthly trailer payment.

What is a Rent to Own Trailer?

A rent to own trailer is a utility, dump, gooseneck, cargo, tilt, or enclosed trailer you can lease on a monthly basis. For each payment you make, part of that payment goes toward the rental fee while the remainder goes toward the base price of the trailer.

Once all of the payments have been made, you become the owner of the trailer.

How Do Rent to Own Trailers Work?

The process works by creating a contract between the lessee and the owner for a specified period of time. The term is usually 24, 36, 48, or 60 months depending on the base price of the trailer.

As noted above, a portion of each rent to own payment for your trailer goes toward the rental fee while the rest goes toward paying off the trailer.

How is a Rent to Own Trailer Payment Calculated?

The payment for a typical trailer might look something like this:

Trailer sales price: $10,000
Term: 48 months
Non-refundable deposit: $400
First month’s payment: $416.67
Total first RTO payment: $816.67

Using the information above, you can calculate how much you will pay for leasing services on your rent to own trailer by using this formula.

(Monthly Rent-to-Own Payment x Length of Rental Agreement) – Cost of Trailer On the Lot = Cost of Leasing Services

So using the example above, where the price of the trailer on the lot is $10,000, if you pay $416.67 for 48 months, the cost of the leasing service is $10,016 in addition to the cost of the trailer.

($416.67/mo x 48 mos.) – $10,000 = $10,016

However, if you choose to return your trailer before the end of the 48 months, or purchase it outright, the cost of the leasing service will be less.

Is Renting to Own a Utility or Cargo Trailer the Same as Financing One?

In short, no. Renting to own is an alternative to traditional financing.

Traditional financing uses a credit application to review your creditworthiness in order to determine whether or not to give you a loan to purchase a trailer. A rent to own, or lease to own contract is a lease agreement.

With a loan, if you default or wish to return the trailer early, a statement will typically be filed on your credit history. However, in a rent to own arrangement, you can return the trailer at any time with no penalty so long as you are current on all payments.

Will a Rent to Own Trailer Agreement Affect My Credit?

A rent to own trailer agreement does not impact your credit. With a rent to own trailer, no credit check is needed since it is not a loan. If you decide to end your rent to own contract early and return your trailer, there will be no impact on your credit score.

Can a Trailer I Rent to Own be Paid Off Early?

Yes. With Trailer RTO, once you choose from one of the many different types of trailers, you are able to pay off the remaining cost of your gooseneck trailer, dump trailer, car hauler, or utility trailer anytime you like.  

Because part of each payment goes toward the lease, only a percentage of your total payments will go toward the purchase price of your trailer. These percentages will be stated in your lease to own contract.

Can I Rent to Own a Used Trailer?

If you locate a used trailer on the lot at a dealer that has a clear title and is roadworthy, we will make it possible for you to rent to own that trailer.

Are Rent to Own Trailers More Expensive?

It depends on what your needs are. If you fully intend to own the trailer outright, making a one-time payment for that trailer will always be the most cost-effective. However, if you only need the trailer for a few months, or cannot qualify for traditional financing, then it might make more sense to rent to own rather than buy it.

Rent-to-Own Trailer Price Compared to One-Time Payment

The extra cost of a trailer in a rent to own arrangement is because of the leasing convenience provided in the agreement that allows you to return the trailer at any time at no additional cost.

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