Build Equity as You Rent: How RPO’s Can Transform Your Vehicle Strategy

Rental Purchase Options are an innovative solution that can be a game changer when it comes to the way your company acquires fleet vehicles. In this article we will dive into what an RPO is, how it works, and why it might be the perfect fit for your business needs.

What is a Rental Purchase Option (RPO)?

An RPO is a flexible financing solution that allows you to rent a vehicle with the option to purchase it at any point during the rental period. This model combines the benefits of renting with the potential for ownership, making it ideal for companies that value flexibility while simultaneously building equity.

How Does an RPO Work?

  1. Flexible Rentals: Start by renting the vehicle for a specified period. During this time, you can use it for your business needs without a long-term commitment.
  2. Apply Rental Payments Toward Purchase: As you make your rental payments, a portion of those payments goes toward the vehicle’s purchase price. This means that the longer you rent, the more equity you build toward ownership.
  3. Purchase Option: Throughout the rental term, you have the option to procure the vehicle at a predetermined value, minus the rental credits accumulated during the rental period. If you decide not to buy, simply return the vehicle like a normal rental.

Benefits of an RPO

  • Try Before You Buy: The RPO model allows you to evaluate the vehicle in real-world conditions before making a permanent decision. This trial period can be invaluable for ensuring that the vehicle meets your specific needs.
  • Cash Flow Friendly: Renting with an RPO helps manage monthly expenses without requiring a large upfront capital expenditure. This flexibility can be a significant advantage for businesses looking to maintain cash flow.
  • Build Ownership Equity: Your rental payments contribute toward potential ownership, allowing you to transition from renting to owning without the hassle of starting from scratch.
  • No Long-Term Risk: If the vehicle doesn’t fit your needs, you aren’t locked into buying it. This alleviates the pressure of making a long-term commitment right away.

RPO Example:

Terms (Example): 60% RENTAL CREDIT in months 1-12, 40% RENTAL CREDIT in months 13-24

An Excel chart displaying a detailed numerical breakdown of monthly rental payments versus the equity accrued in a Rental Purchase Option (RPO). The table includes columns for payment amounts, equity built, and total cost over time.
A numerical view of how rental payments in an RPO gradually build equity, showing the balance between flexibility and ownership benefits.
A bar graph comparing monthly rental payments with equity built over time in a Rental Purchase Option (RPO). The graph illustrates how equity increases progressively with each payment.
A visual breakdown of how monthly rental payments in an RPO contribute toward building equity over time, offering a pathway to vehicle ownership.

Conclusion

The Rental Purchase Option is an ideal solution for businesses seeking a flexible approach to vehicle acquisition. By allowing you to rent with the option to buy, it provides the opportunity to build equity while minimizing risk. If you’re looking for a way to enhance your fleet without the long-term commitment, consider exploring the benefits of an RPO.

For more information about our rental options and how they can benefit your business, contact our national accounts team here!

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Requirements for Personal Use Rentals:

  • A valid driver’s license
  • Proof of full coverage insurance
  • A credit card through a major bank

Please note that debit cards, checks, prepaid cards, and cash are not accepted. You must be 25 years of age or older to rent.

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