Leasing For The Retired

Do Car Lease Agreements Carry an Age Restriction?

At Lamia Leasing we sometimes get asked whether there is an age limit in order to be able to enter into a car leasing agreement, specifically whether there is a maximum age for leasing a car.

Many customers have already discounted leasing as an option for them before even considering it.

Whether you’re looking to lease or buy a car on credit, you will be entering into a credit agreement and therefore your eligibility will be based on a number of factors, which include:

• Residential history – generally finance companies will ask for at least 5 years’ worth of address history; 
• Employment history – normally at least 3 years’ worth of employment history will be required;  
• Income and expenditure – under FCA regulations as part of treating customers fairly, we will need to make sure that you are financially able to afford any proposed vehicle lease before entering into it. As such, we will need to see your monthly income and expenditure; 
• Credit history – with your written authority, a credit search will be carried out by the finance company, which tends to be an Experian credit report.

Credit History &  Car Leasing

Even if you have retired and have not worked for some time, you will still be able to apply for credit to lease a car regardless of age. The decision will be mainly based on the factors above. If you have a pension or several pensions and/or any other form of income such as share dividends, this will all be assessed as to the affordability of the agreement.

Is Leasing for you now you’re retired?

There are a number of advantages to leasing a car as opposed to buying one. A few of these are as follows:

• The car comes with a manufacturers’ warranty. Normally three years, but some are even longer; 
• Road Fund Licence is included in the price for the duration of the agreement; 
• You have the option to include maintenance in the agreement which covers the cost of all servicing, tyres, breakdown recovery and can also cover consumables such as windscreen wipers, washer fluid etc; 
• The agreement is fixed for a period of generally between one to five years so you have fixed cost motoring that is inflation proof if you include the maintenance option…you know where you stand and you won’t get any nasty surprises if the cost of living goes up. 
• At the end of the agreement, you simply hand the car back and walk away. You don’t have the hassle or worry of trying to sell the car and worrying about what you might get for it.

So, if you’re looking for fixed cost, inflation proofed motoring with no stress and the benefit of driving a modern, safe car that suits your needs, your next step is simply to give us a call to talk you through the options and how long it will take to get you behind the wheel.