Car Insurance Reviews

Lease to Own Car Programs

April 08, 2019

Despite the name, a car lease program is not another name for leasing a new vehicle with the option to buy at the end. Auto leasing programs are actually more like leasing programs, where you agree to make payments over a set period of time and own the property once the final payment is made.

what is a lease with option to buy?

Lease to Own Car ProgramsWhen you get a lease to own vehicle, you drive it and make payments on it, but you don’t own it until it’s paid off. Unlike purchasing a car, the leasing company’s name remains on the title as the owner, which means you have to pay title and license fees at the end of the lease term once the vehicle is yours.

Unlike leasing, you won’t get a new car, although you do eventually have the opportunity to back out of the vehicle. The vehicles typically available for lease-to-own programs are used cars, much like the vehicles you find on buy here pay here (BHPH) lots, but that doesn’t mean the cars aren’t worth owning.

Lease-to-own programs can be a great option for borrowers with poor credit. There is usually no credit check involved, so as long as you have the necessary income and down payment, you should be able to get approved for one of these programs. one last thing to note: these vehicles are rented “as is”. Since there is typically no warranty involved, you may want to consider purchasing a used car service contract.

obtain a lease to own a car

As with financing any new or used vehicle, there are pros and cons to the process. Whether or not the pros outweigh the cons depends on your situation. however, lease-to-own programs can be a good place to start when you don’t know where to turn.

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Let’s look at some of the highs and lows of these programs:


  • lower prices compared to new cars
  • payments can be tailored to your payment plan and can be requested weekly or bi-weekly
  • no credit check
  • sign and drive in the same place


  • payments may need to be made in person
  • payments may not be reported to credit bureaus
  • used vehicles only
  • high interest rates and short lease-to-own terms can result in higher payments

Now that you have the tools to determine if a lease-to-own program is for you, you should be able to find a dealership that has this service. Not all small independent dealerships or BHPH dealerships offer lease-to-own programs. But if you’re looking into one of these programs because you don’t think you’ll qualify for a typical loan, you may be in for a surprise.

find a dealer for your situation

the car connection works with specialty finance dealers across the country. Our dealer partners are registered with lenders who know how to work with many types of challenging credit situations.

We know that sometimes getting the auto loan you need and finding an affordable and reliable car means more than just driving a new set of wheels – it can mean the ability to enhance your lifestyle.

Whether you’re looking for a lease dealer to own, a special finance dealer to work with bad credit, or just need a new or used vehicle, we want to help. Fill out our easy auto loan application form to start the process of getting matched with a local dealer today.

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