Is there a maximum age for leasing a car? Can I lease car if I am over 70? For some customers, they may laugh at this proposition but we genuinely do get asked this by some customers who are looking to lease their vehicle for the first-time.
As the customer was new to leasing a car, as many customers are in the UK, there were a number of rudimentary but common questions raised to our CarLease UK team.
So can you be too old to lease a car? Like many financial products and services in the UK, contract hire is based on a principles based regime under our regulator – the Financial Conduct Authority. At the heart of all this is that a business must treat customers fairly; sometimes referred to as the “TCF Principles”.
To start at the beginning, in order to lease a car you must be aged 18 or over as this is a credit based agreement. This means that anyone under this age cannot apply for a vehicle.
There is no maximum age limit placed on the process however; for example we don’t have restrictions for those over 70 or 80 years older. Indeed we have supplied vehicles to customers in their 80’s! Within reason, there would be no maximum age.
In addition to this, please note that contract hire is a credit-based agreement. When a finance company receives an application from us, as the leasing broker, they will review two crucial areas: 1) the credit history; and 2) affordability/suitability.
With regards to the former element, this means a finance company will use credit reference agencies, and monitor how you manage any current or historic financial agreements.
They will also check that you are on the electoral register for your current home address. Added to that is the income/expenditure element, where the customer’s usual monthly financials will be reviewed taking into account any salary (or pension) and comparing this against utility bills, car loans, credit card loans and any other fixed monthly expenditure.
These are two very must distinct concepts and will be reviewed as such.
While there is no immediate obstacle for an older driver leasing a car, what they do need to ensure is that their credit history is correct. Our experience is that many older customers are considerate with their money and will not often use credit to procure good and services. In most cases, their mortgage will have been paid off some time ago. Before making the application, a review of the credit profile is advisable. Additionally, 3 month’s bank statements would be a useful tool, as this will demonstrate the income/expenditure for the individual, in particular illustrating the receipt of a pension and setting out normal costs.
Do older people need to go through extra steps? Discrimination by virtue of sex, religion, ethnicity or age is something we are all mindful of. However, this is set against a background of ensuring customers receive products and services which are suitable for needs and requirements. For example, if an older person must undertake a driving licence renewal every 2 years, should we be offering a 4 year contact hire agreement? As a fixed contract, contract hire does not allow a customer to simply return the vehicle if they cannot use it. In essence, there would be cost penalties. Added to that is the need to protect vulnerable customers. This could be anyone displaying a limitation on capacity to make a decision, mental health issues, emotional distress or a physical disability. As these are more of a risk with older people, this is something both the leasing broker and finance company need to take into account.
Don’t be alarmed or offended if you have to go through additional checks; we are ensuring that you are protected at all times.
In terms of the car shown here, the Peugeot 2008 Estate 1.2 Puretech 130 GT Line 5 Door (Petrol Manual), this is based on the following configuration:
· Ultimate Red Special Paint
· Premium Cloth/Leather – Black
· 17″ Eridan Brilliant Black Alloys
As standard the car includes reversing camera, rear parking aid, 17” alloy wheels, part-leather upholstery, dark tinted rear wide windows, heated rear screen, quickclear windscreen, automatic wipers, front ventilated brake discs, floor mats, Apple CarPlay, Bluetooth, cruise control, navigation, mirror link, Peugeot i-cockpit, multifunction steering wheel, electrically operated/heated/folded door mirrors, LED dial surround, cornering fog lights, halogen lights, LED daytime running lights, air conditioning, 15” spare wheel, sports front seats, alarm/deadlocks/Thatcham cat 1 alarm. In terms of additional specification consider adding – heated front seats and front sensors for a perfect car.
In terms of the technical-side, company car and business users can note the P11d at £22,505 and CO2 at 118g/km. The 1199CC 6 speed manual petrol vehicle delivers 131ps, 0-62 times of 9.3 seconds and combined MPG of 55.4. The service intervals are every 12 months or 16,000 miles, whichever lands sooner.
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