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Credit not so great, will I qualify to buy my leased vehical ? Nervous..

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Susan33
New Member

Credit not so great, will I qualify to buy my leased vehical ? Nervous..

I have a Chrysler 200 (2011) which  I leased thru Ally in 2011 (36 mths) and lease ends in May. I made my last payment last week. I'm panicking a bit now because my credit score is low (approx 550) and not sure if I'll even be able to buy this car.  I know if I do get a loan, the APR will be high. I'd need to get a loan for $13K to purchase it. I live in MA.. Also, once lease is paid off does that reflect positive on my credit report, will it increase my score? My plan is to rebuild my credit after I get the car ( I know, should've been doing this the past 3 years ). Problem is I have no open credit accounts (only had the lease payments) and I have a few chargeoffs that I'm currently paying. Any advice would be greatly appreciated.

Message 1 of 18
17 REPLIES 17
Creditaddict
Legendary Contributor

Re: Credit not so great, will I qualify to buy my leased vehical ? Nervous..


@Susan33 wrote:

I have a Chrysler 200 (2011) which  I leased thru Ally in 2011 (36 mths) and lease ends in May. I made my last payment last week. I'm panicking a bit now because my credit score is low (approx 550) and not sure if I'll even be able to buy this car.  I know if I do get a loan, the APR will be high. I'd need to get a loan for $13K to purchase it. I live in MA.. Also, once lease is paid off does that reflect positive on my credit report, will it increase my score? My plan is to rebuild my credit after I get the car ( I know, should've been doing this the past 3 years ). Problem is I have no open credit accounts (only had the lease payments) and I have a few chargeoffs that I'm currently paying. Any advice would be greatly appreciated.


They have not sent you anything regarding if you want to buy?

They should be able to offer you something not so terrible just because you have good payment history with the lease and are trying to keep the car.

 

I would suggest looking at capitalone.com and see if you are pre-qaulified for anything and take a secured card if no other offers come up... having no credit cards open is holding your score lower.

Message 2 of 18
Susan33
New Member

Re: Credit not so great, will I qualify to buy my leased vehical ? Nervous..

Ally sent me a letter stating that the lease ends on May 21st and asked if I've decided what to do..and if so, how to. It's my understanding that I have to work w/a dealer to get financing. Would it make sense for me to contact Ally directly & tell them I'd like to purchase the car? I did call them a couple mths ago and asked if the buyout price was negotiable and they said no..but I'm not sure if the woman really knew the facts. It would make sense to stick w/Ally if I can to keep paying. Wonder if there's an option to continue the lease another year and then start opening small, secure cards to build my credit. It's a frustrating thing but I know it's my fault for getting me here Smiley Sad

Message 3 of 18
Creditaddict
Legendary Contributor

Re: Credit not so great, will I qualify to buy my leased vehical ? Nervous..


@Susan33 wrote:

Ally sent me a letter stating that the lease ends on May 21st and asked if I've decided what to do..and if so, how to. It's my understanding that I have to work w/a dealer to get financing. Would it make sense for me to contact Ally directly & tell them I'd like to purchase the car? I did call them a couple mths ago and asked if the buyout price was negotiable and they said no..but I'm not sure if the woman really knew the facts. It would make sense to stick w/Ally if I can to keep paying. Wonder if there's an option to continue the lease another year and then start opening small, secure cards to build my credit. It's a frustrating thing but I know it's my fault for getting me here Smiley Sad


I have not dealt with the ned of a lease in a long time but I thought all companies offered financing if you decided to keep the car at the end... I don't think it's negotiable on price but I would call them and ask them if they offer financing to keep the car.

I think I read not to long ago that the lease turn in was at the actual dealership locally and they went and turned it into the dealership and then the dealership turned around and sold it to them as a used card therefore giving them financing on the lot but that was the first lease turn in at the dealership I heard of (and think family bought it vs lease holder) sorry I'm not that much help actually.

Message 4 of 18
Susan33
New Member

Re: Credit not so great, will I qualify to buy my leased vehical ? Nervous..

I will contact Ally tmrw and see what they can offer me as far as financing. It's only $13K, not a real lot to finance but still, not sure what'll happen because my credit score is so low.

Message 5 of 18
pizzadude
Credit Mentor

Re: Credit not so great, will I qualify to buy my leased vehical ? Nervous..

 

Also your lease tradeline will reflect positively for the next ~10 years from the date closed, but I wouldn't expect any FICO score boost when it's paid in full.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 6 of 18
coterotie
Established Contributor

Re: Credit not so great, will I qualify to buy my leased vehical ? Nervous..

First check the value of the vehicle vs. your payoff.  If you are majorly upside down, turning it in would be the best thing to do.  You could conceivably repurchase it for the actual value from the dealer (although many times it goes straight to the auction).  If you aren't upside down or only slightly negative, then the leasing company is your best bet.  Every lease I have had has sent me a letter with options.  Essentially re-lease the car for a short period say 2 years, buy the car with a regular loan etc.  They may or may not run your credit (I have had them not do a CR, just send the paperwork and go on down the road).

 

Finally, your local Credit Union may help you here.  If you have good equity in the car and you can show that you have paid it consistently, they may be willing to take a chance.  It is only one inquiry vs. the dealer running you 30 times.  The dealer is going to be looking to put you in a new car, not help you keep this one.

Message 7 of 18
Susan33
New Member

Re: Credit not so great, will I qualify to buy my leased vehical ? Nervous..

The purchase price is $13k which I don't think is negotiable. This is a good price for the car. So I tell Ally ID like to purchase it finance thru them right? That is if I get a decent rate. Was ur comment saying to lease it w them anothr 2 yrs?
Message 8 of 18
coterotie
Established Contributor

Re: Credit not so great, will I qualify to buy my leased vehical ? Nervous..

No I was not saying to lease for another 2 years, what I said was I have been offered that.  For example, when our Mercedes came off lease I got the following offers:

 

 

1 year lease at $XXX

2 year lease at  $XXX

3 year loan at $XXX

5 year loan at $XXX

 

So we picked the offer that at the time made the most sense.  The purchase price isn't negotiable, however, the value of the car is found on NADA, KBB etc. Looks like an average condition 200 with 36K miles is worth about $12,000 retail.  So you're not too far upside down.

 

In hindsight we should have walked from the car as it turned out to be a lemon from the time the car got put in our name.  But my wife loved it.  We still have the car as we can't get the title.  So I have a 1996 E class mercedes with 70K miles that I can't really do anything with.  I'm really thinking about restoring the car now and treating like a classic car.  When it runs it screams and gets 28 MPG at 100 mph.  It only gets 24 at 70.

 


@Susan33 wrote:
The purchase price is $13k which I don't think is negotiable. This is a good price for the car. So I tell Ally ID like to purchase it finance thru them right? That is if I get a decent rate. Was ur comment saying to lease it w them anothr 2 yrs?



Message 9 of 18
Susan33
New Member

Re: Credit not so great, will I qualify to buy my leased vehical ? Nervous..

So Ally would make these offers to me?
Message 10 of 18
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