What You Need to Know
In the midst of another lockdown, many industries are changing and adapting to follow the new way of life and continued restrictions on day to day activity - this of course includes the entire car industry.
It’s an unpredictable and rapidly changing situation which has generated a great deal of concern and confusion. So here at LeaseLoco, we thought it would be good to let you know how Covid-19 has affected car leasing, what changes there are to the process - and the options you have if you’re keen to lease a car now.
Can I Still Lease a Car during Lockdown?
Yes you can! While all non-essential retail is closed, meaning car show rooms are shut; you can still easily compare deals online without having to leave the house! Everything from researching, comparing deals, discussing quotes and completing applications can all be done online. Not to mention getting FREE delivery straight to your door.
Car Manufacturing Levels
With UK car manufacturing suffering through 2020, it is likely that as we are still in a lockdown, car manufacturing will continue to see a delay and backlog. Manufacturers have had to close their factories or work at reduced capacities, which has caused a delay to factory order leases. But just to give you an idea of what we’re seeing, here’s the factor order lead times* for some cars that have been popular recently:
Audi A3 Saloon - 4-5 months
Audi A6 Saloon - 3 months
SKODA Kodiaq - 3 months
Ford Kuga - 2-3 months
Volkswagen Golf - 4 months
Factory orders will have a longer delivery than usual, so if you’re in a rush to get a new car, opt for a stock car deal. Luckily there are plenty of cars in stock, ready for delivery.
We have made it really easy to see which deals are cars in stock on our website to help you while you search.
Delivering your New Car Safely
There have been minimum standards and guidelines released by the BVRLA for vehicle deliveries and collections during Covid-19 to reduce any potential risks and ensure safety of everyone involved. This includes car deliveries being a contactless approach, with delivery drivers sanitising every vehicle and cleaning all the touchpoints when handing the car over. So you can rest assured that you will get a safe handover of your new car!
Amending Mileage on a Lease
The pandemic has affected everyone’s vehicle usage in different ways. While many will be working from home and using their car a lot less often, on the other hand, some people may need more mileage to avoid using public transport; to support other people; or if they need to take a longer commute.If you want to increase your contract mileage, you can call your lease company who may re-quote you and change your monthly amount to reflect your new forecasted mileage, which is surprisingly a pretty pain free experience - if you do this in advance of going over your mileage!
If you are covering significantly less mileage, it is definitely worth looking into reducing this to save some money! If you’re traveling less miles, the car will be worth more and your lease should cost less. With any contract change, it will be at the funder’s discretion, but, if you’re at a massive financial disadvantage and spending a lot more than you are using, they will likely consider amending your lease contract, especially during this strange time with lots of changing circumstances. So if you’re in this position get in touch with your leasing company and see what options you have.
Extending Your Lease
There may be a number of reasons people want to extend their lease due to Covid-19. Whether it be not wanting to get a new lease deal soon and pay a deposit; or to keep your car for a while longer during the lockdown; you can contact your leasing provider to discuss an extension.
The leasing companies will usually have options available with an informal extension being one. This allows a shorter rolling period for an extension on your car lease with the cost remaining the same. A formal extension is another option which is an extension of a longer period of six or more months, where you will be offered a new monthly fee.
We would recommend arranging this early on before the end of your contract as it can sometimes take up to 4 weeks to organise. But of course who doesn’t love getting a new car so be sure to check out our hottest deals before extending.
Cancelling your Lease
If you find yourself in a position that you don’t really need your lease vehicle at all due to a change of circumstances, then you may want to cancel your lease early. It is possible to exit a lease deal early, but there will be an early exit penalty fee, so you should get in contact with your leasing provider to find out what this will be.
Watch Oliver and Alex talk about exiting your car lease deal early.
Can’t Afford Lease Payments
The financial difficulties that Covid-19 has put many of us in has been pretty immense and stressful. Being able to afford car lease payments is yet another concern for people who have faced income changes or job losses.
The FCA have announced measures in place to support car finance customers who may be experiencing financial difficulties due to Covid-19. While you can lower your mileage, or try downgrading your lease vehicle, these measures also provide the option of a payment holiday of up to 6 months. Get in contact with your car leasing company to discuss the best options for you.
Please note: the deadline to apply for a car finance payment holiday is on the 31st March 2021.
Getting an MOT
While the government previously had put a hold and extension on essential MOTs in the first lockdown, they have now confirmed that garages can remain open for repairs and MOT testing. So it’s your responsibility to get an MOT if you need one – don’t forget!
Luckily many of us LeaseLoco users won’t need to get an MOT until the car is 3 years old!
Final Thoughts
The last year has seen a huge change in circumstances for many of us. But don’t stress about your lease contract as there are always options and we are sure all of our leasing partners will be more than happy to help.
While this past year has impacted the motor industry in many ways, some good and bad, it may be easier now than ever to find a great lease deal just by sitting on your couch! If you are considering getting a new lease car during Covid-19, we recommend looking and planning now or opting for a stock vehicle for a quick contact-free delivery!
A final tip for the road…. If you are not using your car during the lockdown, experts recommend starting your car and letting it run for about 10 minutes once a week to avoid a dead battery.
Arriba!
Compare the hottest lease deals at LeaseLoco.
*All lead times correct at time of publishing.