Dealing with the “age-restriction” and car leasing…
To lease a vehicle, you must be aged 18 or over as this is a credit based agreement. While there is no age cap, anyone who is older may require additional input as a potentially vulnerable customer. In the words of the FCA,
this is someone who, due to their personal circumstances, is especially susceptible to detriment, particularly when a firm is not acting with appropriate levels of care…
As part of our obligations, we would always insist that the customer does not make a purchasing decision straight away, particularly if they visit the team here. In every instance, and without being offensive, we would implore that the individual seeks advice from a relative or trusted friend who can help them to review the obligation they are about to enter into. As many of our quotations/sales processes occur via emails and telephone calls, this often provides a comfortable distance. However, for those customers who insist on meeting us face to face, we do want them to review the decision before proceeding further.
Additionally, the point of “retirement” is another which frequently arises. As noted above, contract hire is a credit based product and, as part of this, we will ask for an income and expenditure analysis from each customer.
For a retried person, we would expect to receive full details of any income received through a private/public pension as part of this analysis.
In essence, we are looking to establish that the income our prospective customer receives is sufficient enough to meet their obligations under a leasing arrangement. If a customer’s income/expenditure is very closely aligned and there is little scope for additional expenditure, we would always recommend that the customer reviews the suitability of the arrangement.
This is not just about the cost of the vehicle but also the cost of maintaining it (servicing, tyres and breakdown recovery), fuel and also insurance.
For any older-customers looking to lease a vehicle, do consider meeting your credit broker face to face if you have any overarching concerns or conduct the necessary research via the FCA, BVRLA and Companies House to check the status of the broker before proceeding further.
Read more leasing help and advice or check out some car reviews in our blog… For more info on older age car leasing, speak to one of our helpful team (click here) who will be happy to talk over any points which may e raised.