A referral from one of our existing customers, our customer got in touch with our team to discuss leasing a car for the first-time. What perhaps added another dynamic was the fact that the customer was concerned that their age might preclude them from leasing a car. This leads onto the question – is there a maximum age for leasing a car? Can I be too old to lease a car?
One of the fastest growing demographics in the car leasing world (which we have noted) is the older-generation; in particular those over the age of 60 looking to lease a car. Traditionally (and maybe correctly), the approach to vehicles was to buy when you had enough money to do so. In particular, there has been an emphasis on purchasing vehicles “cash”, so as to avoid any real finance on the vehicle.
Such careful budgeting is not something which we would criticise, as financial prudence is something which every modern economy requires.
That being said, what needs to be understood is that almost all cars do not appreciate in value; if you purchase a car, it will devalue over a certain period – more so in the first two years. For those customers who wish to swap their vehicles every 2-4 years, this starts to beg questions about the value which they are getting. While purchasing the car cash may feel like a sensible decision, if you analyse the depreciation on said vehicle, your prudence may need further consideration. One of the main issues with deprecation is that no one can foresee just how quickly a car will depreciate, as this is influenced by political and economic undertones.
Say the government place emphasis on diesels being “bad for you”, you would then see a reduction in the appetite for a diesel engine. This could see your vehicle become less popular and therefore less valuable.
In contrast, a contract hire agreement is far more certain – this is one of the key features of leasing. You agree a deal over 2, 3 or 4 years based on your annual mileage and initial rental. This produces a fixed monthly rental, which can even include all of your servicing, tyres and maintenance (funder-maintenance). The price you pay will almost never change, unless you increase your mileage or if there is a change in Vat/VED rates. As such, there is no concern about residual values or depreciation, as this is a risk which is undertaken by the finance company who are the registered owner of the vehicle.
If a car suddenly becomes less popular, the finance company receive less at an auction for the car. This is not something which the driver/customer needs to be concerned with.
Also added to this is the ease and convenience of contract hire; you don’t need to go to dealerships, haggle with salespeople or worry about part-exchanges.
For older people, this certainty is actually quite a refreshing concept, particularly when it is alleged that some dealerships user pressure sales tactics.
To confirm on the matter, there are no maximum age restrictions on leasing car, in that you will not be declined from applying if you are 70 or 80+ years old. The crucial point to note is that it is a credit based agreement, so it is first a question of credit as to whether or not the financial product is suitable for you.
You will be asked to provide your personal details, home address history, employment history (you can state that you are a retired person), income/expenditure and bank details. If you haven’t undertaken a credit search recently, it may be worth running a report with Experian. This credit reference agency is used by a number of finance companies and they will help you understand your position.
Additionally, if you are concerned about working with an online broker/finance company, you may seek assistance from a relative or friend. As part of treating customers fairly, we do operate a vulnerable customer policy and this can be brought into action with older customers.
What we don’t want to do if offend our customers but, at the same time, we operate to the highest standards and we want to ensure the transaction is carried out professionally.
In terms of the car shown here, the Vauxhall Mokka X Hatchback 1.4T Design Nav 5 Door Auto (Petrol), this is based on the following specification:
· Satin Steel Grey Metallic Paint
· Milano Cloth – Jet Black
· 18″ Silver Alloy Wheels
In terms of standard specification the car includes comfort seats, 18” alloys, tinted windows, rain sensing wipers, hill start assist, Bluetooth, cruise control, front and rear parking sensors, satellite navigation, Apply CarPlay, electric folding mirrors which are electrically adjustable and heated, front skid plates, automatic lighting control, high beam assist, LED daytime lights, climate control, immobiliser, 8-way adjustable driver seats, multifunction steering wheel and a front centre armrest. In terms of additional specification, consider adding dark tinted windows, a winter pack and a steel spare wheel. Alternatively, upgrade the car specification to the Elite Nav.
On the technical side, company car and business users can note the P11d at £21,265.00 and CO2 at 162g/km. The 1364CC 6 speed petrol auto engine delivers 140ps, 40.4 combined MPG and 0-62 times of 10.1 seconds. Service intervals are set at every 12 months or 20,000 miles, whichever lands sooner.
Find the best leasing deals for the Vauxhall Mokka X @Carlease UK or be sure to check out some of our other SUV reviews below!