One of the big questions we get asked quite frequently here at CarLease UK is about age limits for a car leasing agreements, in particular whether there is a maximum age for leasing a car.
First and foremost, contract hire and leasing is a credit based product. An individual’s eligibility will be based on a number of factors, including:
Our primary answer to all customers, regardless of age, will be largely based on the criteria above. Of course, for retired people, particularly older people who have been out of full-time employment for some time, there is an assumption that car leasing is not a financial product which is available to them. This assumption is incorrect. As many retired people will have a pension (or a series of pensions), this income is considered as part of the financial analysis we review in the above. Further to that, the residential history and credit history can still be supplied to us; this is not an inherent problem just because you are older or retired. It would remiss of our industry to forgo what is affectionately termed the “Grey Pound”.
Is contract hire and leasing a good idea for a retired person? Well, the answer is no different to any of our potential customers. There is an interesting debate which exists between car usership (contract hire) and car ownership (PCP/Hire purchase), in an effort to find out which is better. In fact, it will depend on the individual and their circumstances as to which financial product is most suitable.
Some of the leading points for an older person leasing a car would be:
Additionally, we do suggest that a contract hire product can offer the customer a fixed cost approach, as you can create a situation where you need only insure and fuel the vehicle. In our modern economy, the ability to fix your costs is an admirable quality. As the changes in our economy happen, it is god to know the impact on depreciation is irrelevant to you, as this is a risk the finance company undertakes.
However, if you looking to purchase a vehicle or you need something which is more flexible, do speak to one our team (click here) about purchase/ownership syle products such as Personal Contract Purchase (PCP) and Hire Purchase (HP). We look forward to hearing from you. Alternatively you can read more car leasing help and advice in our dedicated section (click here) or feel free to read some of the latest car lease news and reviews in our blog (click here).