Posted 5 months ago
Shopping for a used car can be confusing, especially if you're unsure what options are available. If you have been looking for a used car but are unsure what Lease To Own means, you have come to the right place!
Did you know that even with a FICO score of less than 600, you can still get financing for a used vehicle? If you are in the market for a used car and are having trouble finding an affordable one, then you need to know what options are available.
Leasing a used car (also called "Lease To Own") means that as long as you make the agreed-upon payments for the length of the lease, you have the option to buy the car outright in the end for a predetermined price.
In this article, we will explain the process of leasing a used car, the benefits, and help you decide if buying or leasing is the right choice for you.
Leasing a used car is an excellent option for anyone with no credit or credit that is in bad shape. Many people choose to lease because they want to own the vehicle at the end of the lease agreement. Keep reading to get more in-depth knowledge of this process and other advantages of the Lease To Own program.
Lease To Own means that as long as you continue making your car payments, you own the vehicle outright at the end of the lease. This is often a much better option than acquiring a subprime loan, as they have incredibly high-interest rates.
People in the market for a used car who don't have the means of buying it outright or getting a standard automobile loan typically choose to lease a used car. Standard auto loans usually have interest rates between 3% to 5% when the borrower has good or great credit.
If you have a low credit score and have to look into subprime loans, you will find that they are generally in the 15% to 20% range and sometimes even higher. Most lenders will turn you down if your credit score is below 600. When leasing a used car, you will often find that you can get a car with little, bad, or even no credit.
Using Lease To Own, you have the option to buy the vehicle at the end of the contract, which you may prefer, instead of giving the car back to the dealership after making payments for the length of the lease. The amount you pay to buy the car at the end of your lease is the value of your car minus the payments you made.
A traditional lease is usually only for new cars. You pay for the vehicle monthly until the contract is up. New car leases often still require a sizable down payment and credit that is in good standing. Having bad or no credit rules out a new car lease in almost every situation.
When searching for the right place to lease a used car, pay attention to what extras and bonuses they offer. Quality dealerships will often provide additional value for choosing them.
Here are some examples:
If you have bad or no credit and have decided to lease a used car, it does matter who you trust to help you through the process. Not all Lease To Own dealerships are the same. You want to pick one with experience, a great selection of used vehicles that are clean and well maintained, an honest and helpful sales team, and a dedication to help you get financing no matter the shape of your credit history and score. You will know you found the right place when all these conditions are met.
If you are in the Little Rock area and would like to learn more about leasing a used car, or if you are ready to get pre-approved, contact us today!