Get free advice from our Covid-19 Small Business Support Team. Learn More

Search for the best van and pickup leasing deals.

Covid-19 Outbreak: How To Arrange A Car, Van Or Pickup Truck Lease Payment Holiday

Published on Thursday 23 April 2020 in Van News

Covid-19 Outbreak: How To Arrange A Car, Van Or Pickup Truck Lease Payment Holiday

 

As the Covid-19 outbreak continues to limit movement & the ability to work, people who lease cars, vans & pickup trucks will no doubt be wondering if they can arrange a payment holiday from their lease – just like they can with their mortgage payments. In fact, one of the questions our Covid-19 Small Business Support Team gets asked the most right now is: "How do I get a payment holiday for my van lease?" So, here's everything you need to know about arranging one.

 

What Is A Lease Payment Holiday?

Just like a mortgage payment holiday, a van lease payment holiday is a temporary stop to payments made by a customer to a finance provider in return for use of a vehicle.

The length of the payment holiday is agreed by the finance provider & the customer. The finance company will work out what the future monthly payments will be by spreading the missing payments over the ones left to pay.

 

How Do I Arrange A Lease Payment Holiday?

The easiest way to arrange a lease payment holiday is to contact your finance provider directly, or indirectly through the third-party who organised your lease for you, & request a payment holiday.

Finance companies have been asked by the Government & industry regulators to do everything they can to help customers through the financial hardships that the Covid-19 outbreak may cause.

 

If I Am A Vanarama Customer, How Do I Arrange A Lease Payment Holiday?

If you're a Vanarama customer, we have been asked by the finance companies we work with to advise our customers to contact them directly. We're not trying to brush off any responsibility, instead we want to put you in touch with the correct partner to help arrange your payment holiday.

Please contact the finance company your lease agreement is with (the company's name will be on the paperwork sent to you at the beginning of the lease):

 

 

You can also call Vanarama's Covid-19 Small Business Support Team on 0808 196 3900 for free advice on how to arrange a payment holiday on your lease agreement.

 

What Have The Vehicle Manufacturers Said?

Every major manufacturer has confirmed that any customers facing financial difficulties as a result of the Covid-19 outbreak should speak directly to their finance or leasing provider about a lease payment holiday.

Depending on who you arranged your lease with, this could involve contacting a manufacturer directly or a third-party finance or leasing company (such as Vanarama).

 

What Does The Financial Conduct Authority Guidance Say?

The Financial Conduct Authority (FCA) makes sure that financial markets offer consumers a fair deal & during the Covid-19 outbreak has issued guidance that it expects finance companies to follow in regards to motor finance payments. This guidance applies to firms that issue regulated motor finance agreements, including:

 

  • Hire Purchase agreements (such as Personal Contract Purchase (PCP) agreements).

  • Conditional sale agreements (or other credit agreements used to purchase a vehicle where the creditor is also the supplier).

  • Personal Contract Hire (PCH) agreements (such as the lease deals on brand new personal & commercial vehicles that Vanarama helps customers acquire).

 

The FCA has stated that finance companies should try to provide any customer who is - or may in the future - find it hard to keep up with lease payments as a result of the Covid-19 outbreak.

If a finance company decides a payment holiday is not the right course of action, the FCA has also issued guidance on what a customer should expect. It says that finance companies should find other ways to help customers, including a payment deferral of less than 3 months or agreeing to accept lower payments for a few months. Each individual case will be treated according to the customer's financial situation.

 

Contact The Covid-19 Small Business Support Team For More Information

If you have any questions about this topic & the financial support available during the Covid-19 outbreak, please call the Covid-19 Small Business Support Team for free on 0808 196 3900 (8:30am - 5:30pm, Monday-Thursday. 9am - 5pm, Friday). Or, take a look at our Covid-19 Small Business Support information hub.

 

Comments