If you have a car lease and you're not sure what you want to do with it once it's complete, you do have the option of refinancing it. While it's possible to refinance an auto lease, it's not the only option you have. Curious about what you can do with your vehicle when the lease is up? Keep reading to find out.
End of Lease Options
No matter if this is your first lease or your fifth, the options you have at the end stay the same. Although you don’t own the car during a lease, you can refinance it and transfer ownership once the term is up.
If you’re still not sure about refinancing, you have other options to consider at the end of a lease:
Buy the vehicle – You can buy the car outright at the end of the lease term or refinance it. Once you buy or finance it, you own it and can either keep it or sell it.- Return it and lease again – If you liked your lease and want to continue leasing, you can simply turn it in and lease another vehicle. When you lease again with the same company, you can usually avoid paying a termination fee on the old lease.
- Lease pull-ahead – This is a good option if you’re not quite at the end of your lease term but are close. This isn’t offered by all leasing companies, but a lease pull-ahead allows you to skip the last few payments if you plan to lease another car from the same company. You can usually avoid paying a termination fee because you’re leasing again.
- Transfer your lease – Not all lessors allow this, and this option only works if you have someone who qualifies for a lease and is willing to take it over for you. You also most likely need to pay a transfer fee to do this.
Leasing a Car with Bad Credit
If you’re considering leasing but have bad credit, is it possible to get approved for one? The answer is usually no, as leasing is typically reserved for consumers with good credit. While lessors often place a heavy emphasis on credit scores, some may approve people with imperfect credit.
If a lessor does approve you for a lease with bad credit, you may need to bring in additional documents, such as:
- Proof of residence, such as a recent utility bill in your name at the address listed on the application.
- Proof of income, such as a recent computer-generated pay stub that shows year-to-date earnings.
- A list of around five to 10 personal references complete with names, addresses, and phone numbers.
- An additional security deposit(s) and an upfront payment that includes the first lease payment plus tax, title, and license fees.
The Bottom Line
Leasing may sound ideal if you’re looking to drive a new vehicle at a lower cost, but if you have bad credit, the bottom line is that you most likely aren’t going to get approved for one. What you can do is build up your credit by taking out a subprime auto loan for a modest car, and put yourself in a position to lease in the future.
Auto Credit Express wants to get you matched to a dealership that has the lending resources you’re looking for. We've been helping credit-challenged consumers find financing by connecting them to local special finance dealers for over 20 years. Simply fill out our free and easy auto loan request form to get started right now.
