Can I Purchase My Leased Vehicle with Bad Credit?

by Stacet
(Hypoluxo, Fl, USA)

Question: Can I purchase my leased vehicle with bad credit?

Answer: Whether you can purchase your leased vehicle or not will depend on a few factors, some of those I will simply have to guess at since I do not know your exact credit situation.

  1. How Bad is Your Credit?

    First off, if you haven't seen your credit recently, then I'd suggest you take a look, as your past/current credit history is of course going to play a big factor and so will your current credit score.

    You can Get your Credit Score at and take a look at what is causing your bad credit.

    Is it one account, two accounts, or possibly more accounts holding you back?

    If you've got major problems, like a recent repossession (other vehicle), foreclosure, fresh bankruptcy, currently in bankruptcy, etc., then you are going to have a tough time refinancing and would probably be easier just to turn it in and buy another one.

    If you find that a lot of what is dragging down your credit is medical collections, slow pays on credit cards or other accounts (no current delinquencies on mortgage or auto loans however), but no major problems, then you may have an easier go.

    The current state of the economy has caused quite a few people that had excellent credit to now have to jump through hoops to get a loan.

    I'm assuming your credit had to have at least been above average before, because to get a lease you usually have to be above average or better.

    That being said however, if you had a solid credit history in the past, this will still mean something to the right lenders and they will recognize that your intentions are good and have been good, but bad things have happened to a good person.

    Don't get me wrong, this does not mean that prime
    lenders will give you excellent rates just because you've borrowed from them in the past.

    In fact, they may not even approve your loan now, but middle of the road lenders like Capital One, Wells Fargo, Chase, etc. will take these things into consideration.

    Try to clean up what accounts you can and either pay them off or make payment arrangements to get them current. This will help your credit score and show future lenders you try to refinance with that your intentions are still to pay.

  2. How Have You Paid on the Lease?

    An important factor will be how you have paid on your current lease. If your payments were 30 days late every other month, then this will not be a good thing.

    But, if you have paid well and been on time with each payment, then this will show lenders that you have every intention of paying on this car, no matter how bad things got!

  3. Who You Are Currently Financed With

    Have you checked with the lender for your current lease? Assuming you have paid well, they may have a program that will allow you to refinance from a lease to a straight purchase.

    This may be even easier to do if it was leased through the manufacturers financing arm. I know at one time, Ford Motor Credit would refinance a lease to a straight purchase at a prefixed future rate.

    I did this personally. I leased at .05% and was guaranteed a future finance rate of 5.5% if my payment history was good with them. It was very easy!

    As long as your payment history with them was good, they didn't care what had happened to the rest of your credit.

Hope this information helps you to buy your leased vehicle with bad credit and please don't hesitate to contact me with any more questions.

Take care,

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