All models of the Range Rover are popular with SUV lovers across the United States for their unique designs, sophisticated styles, and versatile interiors. One such model is the Range Rover Sport, which is great for both leisure and business. It is a versatile, fuel-efficient vehicle great for both individuals and organizations. Like any other vehicle, you can lay your hands on the Range Rover in three different ways – purchasing, leasing, or renting.
If you have bad credit, leasing a Range Rover can be challenging, with leasing companies denying you a lease, charging exorbitant monthly payments, or demanding an astronomical down payment. In that case, your only recourse is to accept a Range Rover lease with no credit check, which is available from a select few leasing companies. This article discusses everything you should know about getting a Range Rover lease and the effects of bad credit. Get immersed into the details below:
Should You Buy or Lease a Range Rover?
It isn’t apparent what you should do when deciding whether to buy or lease a Range Rover. Purchasing a Range Rover means you must pay its entire cost either upfront or monthly. With either option, you assume ownership of the car after spending the last cent on its price. Leasing is different because it offers you a vehicle for use as you pay monthly for part of its value. At the end of the lease, you would essentially have paid for the time you took using the car.
Benefits of Leasing a Range Rover
Leasing a Range Rover comes with many benefits, which any individual or business can enjoy by taking up the lease. They include the following:
1) You Can Easily Change Your Range Rover Model
One of the most significant benefits of leasing a Range Rover is that you free yourself from getting tied down to a specific model for too long. Depending on the lease period, you can get a brand-new Range Rover and drive it for up to 3 years. Afterward, you can change to a newer model if you do not want to purchase the one you already have.
2) A Lease Comes with a Purchase Option
At the end of the lease period, you can choose whether you want to purchase the vehicle. It doesn’t matter if you had entered a Range Rover lease with no credit check or one involving all the necessary procedures. Purchasing means you now become the vehicle’s official owner, with title and everything.
3) Leasing Involves Lower Costs
Like purchasing a car on credit, leasing involves monthly payments. However, the monthly payments represent a fraction (the depreciation over the lease period). Hence, you end up with a lower amount in monthly payments on a lease compared to purchasing.
4) Tax Benefits for a Business Lease
A business lease usually qualifies one for tax refund or deductions when you file your tax returns. That means that instead of leasing the vehicles as an individual, you can do it through your company or business.
5) Warranty Coverage
The vehicle is covered by a reliable warranty during the lease duration, taking care of all routine repairs and maintenance. Thus, you don’t have to worry about spending money on maintaining the vehicle. However, there is an exception, especially for those who get to lease a car despite their poor credit rating.
6) It Make Trading in Easy
When the lease expires, you could want to upgrade to the latest Range Rover model from the same leasing company. All you must do is return the vehicle when the contract ends and inform the company that you would like a newer Range Rover Model. They will handle the paperwork and help you drive away with a better vehicle.
What Credit Score Do You Need to Lease A Range Rover?
In truth, you need, at the bare minimum, a “good” credit score to lease a range rover. That means a credit score of 700 or more. In some cases, you can get a Range Rover Lease with a credit score of 620. Anything below that is “subprime.”
However, several leasing companies may still approve a Range Rover lease even with poorer credit. Only that you will have minimal options if you choose that route. For example, the leasing company may require you to make a higher down payment or monthly payments.
Essentially, there is no magic number for the acceptable credit rating to qualify for a Range Rover lease. Leasing companies may use Equifax, Experian, or TransUnion reports, but they base their acceptance or decline on several other factors. They usually consider the vehicle’s affordability and age.
Where to Get a Range Rover Lease No Credit Check?
Are you considering leasing a Range Rover with no credit check? There are two places you can get a lease of that kind. They include the following:
1) Mainstream Leasing Companies
Some mainstream leasing companies have products targeting individuals and businesses with poor credit scores. They charge an annual percentage rate called the “money factor” or “lease factor”. The money factor is different from the percentage rate on a car loan since it appears in the form of a decimal fraction. Leasing companies use the money factor to determine you will pay as the lease charge, which is the cost of securing the lease financing.
Leases for individuals with a high credit score usually attract a lower lease factor than those whose credit score is not so good. That means that getting approved for a lease with bad credit can result in high monthly payments.
2) Lease-Here Pay-Here Dealerships
After rejection from mainstream Range Rover Leasing companies, your only recourse could be in lease-here pay-here dealerships, which mainly deal in used vehicles. Since they have no new cars, these dealerships cannot offer a Range Rover lease with no credit check.
As enticing as their deals might be, these dealerships charge exorbitant weekly or bi-weekly payments. Additionally, they have no warranty coverage, so you must deal with all the vehicle’s repair and maintenance requirements. Lease-here pay-here is great if you do not have another option. However, choosing to lease a car from them requires strict due diligence concerning their terms and conditions.
How to Lease a Range Rover with Bad Credit?
It is an emphatic “yes” that you can lease a Range Rover with lousy credit. However, the deal you get depends on how much research and due diligence you put into it. Before you can qualify for that lease, here are a few things to consider:
1) Find Out Your Credit Score
A credit score is a report summarizing your level of responsibility when taking and repaying your loans. You can get this report from a reliable credit reference bureau. It outlines how you were able to deal with all the creditors you have approached. Once you have a copy of the report, carry it with you on your visit to the Range Rover dealership. A credit score can be between 300 and 850, with the lowest rating for a conventional car lease starting from 620. Scores below that are subprime and cannot qualify you for a standard Range Rover Lease.
2) Verify That You Have a Steady Income
When you have bad credit, your only redemption could be proof of a steady income. On your visit to the Range Rover dealership, carry all documents showing how much money you make after how long. That may include copies of the most recent pay stubs. However, you must also prove that your income can cover the monthly payments and meet your other expenses. Also, show the leasing company that you are doing all that’s humanly possible to improve your credit score. You can include personal and professional references who can vouch for you.
3) Save Up for a Substantial Down Payment
You can raise the amount of money as a down payment can make or break a Range Rover lease deal. If you have excellent credit, the leasing company might not require you to make any down payment. However, if your credit rating is in the ICU, placing a substantial down payment can convince the leasing company to grant you a deal. Of course, it could be impossible for you to raise all the money you need for the down payment at a go. So, take time to save a little until you’ve accumulated enough money to spark off a Range Rover car lease.
How to Improve Your Chances of a Range Rover Lease Approval?
The chances are that the leasing company will decline your application to lease a Range Rover for having a less than perfect credit rating. What are some of the things you can do to increase your chances of getting approval? The following are some executable suggestions:
1) Make a Substantial Down Payment
Even if the leasing company doesn’t ask for a down payment, be sure to offer it to them. A down payment or cap-cost reduction, or capitalized-cost reduction shows that you are serious about your quest to get a Range Rover lease. Putting in a larger down payment helps lower the value of the lease and the resultant monthly payments. If you plan to save towards a down payment, find out how much they accept as the total capitalized-cost reduction from the leasing company.
2) Get a Co-Signor
Now that your credit isn’t that impressive, having a friend or a relative co-sign the lease documents can increase your chances of getting approval. Ensure that your co-signor has an excellent credit rating to reassure the leasing company of your ability to make timely monthly payments. However, it would help if you noted that the co-signor is not obligated to pay for you unless you default. Therefore, you should make them aware that the two of you are joined at the hips.
3) Reduce Your Debt-to-Income Ratio
The debt-to-income (DTI) ratio is a calculation that’s expressed as monthly debt payments over monthly gross income. When it is high, your debt-to-income ratio shows how much you are burdened with debt repayments and might not be able to make the monthly payments on the lease. That’s why you should strive to bring down the DTI as much as possible.
What Alternatives Do You Have When Leasing A Range Rover with Bad Credit?
- Do a Lease Swap: If you can’t get approved for your Range Rover lease, why don’t you consider taking over someone else’s lease? Once the leasing company supports a lease swap, you will assume responsibility for making the monthly payments and any other obligations that come with it.
- Find a Bad-Credit Dealership: If you want to lease a newer Range Rover model, consider a dealership with a bad-credit department for individuals with a poor credit score. While the dealership is likely to approve you, it may charge you higher interest rates.
Frequently Asked Questions (FAQ)
Is it cheaper to buy or lease a Range Rover?
How much does it cost to lease a brand-new Range Rover?
Is it worth leasing a Range Rover?
So, have you found your Range Rover lease with no credit check? If you haven’t, don’t despair. You can take time to save money towards a substantial down payment to help you qualify for the lease. Compared to purchasing, leasing a Range Rover costs much less since you’re only paying for a fraction of the vehicle’s value. If the car impresses you, you can purchase it when the lease ends. If you cannot qualify for the lease, consider a lease swap or find a dealership that works with individuals with bad credit.