The AA is launching into the mobility market, beginning with existing members.
Drivers can get on the road with a new inclusive personal car lease product in partnership with LeasePlan UK.
Smart Lease offers unmatched transparency and certainty, allowing drivers to see the total cost of driving a vehicle over the course of the agreement. As long as the customer meets certain qualifying criteria such as a clean driving history, the lease includes fully comprehensive car insurance, regardless of the customer’s age, driving history and where they live.
The product’s inclusive monthly cost also covers servicing and maintenance, Vehicle Tax and VAT, and cars will be available on either a 24-month, 36-month or 48-month contract. Drivers do not need to make an upfront deposit in order to take out a lease, and the cars will be delivered to customers’ doors.
Unlike most other lease products on the market, the car can be returned without penalty in certain situations if the customer’s financial circumstances change, such as if they are made redundant or get divorced. The pandemic makes this feature particularly timely, as many people are facing uncertainty around their employment.
If the car is driven more, or fewer, miles than planned during the course of the lease, the mileage plan can also be changed once, at any time during the contract period, with no admin fees.
When the lease ends, the car can be collected or swapped for a new one if the customer signs a new agreement, and any repair costs up to £500 for small scratches and superficial damage will be waived.
AA customers who have been members for over a year will be the first given access to the product, and
can select from 12 different cars, including three electric models; the Vauxhall Corsa-E, Hyundai Kona and the Volkswagen ID.3. Smart Lease packages start from £290 a month.
To lease a car, the applicant must be aged 25-75 and have held a full driving licence for more than two years. They must also have no driving convictions and meet the credit score criteria.
Car leasing makes up around 12.5% of the car finance market but this is expected to grow in line with a broader trend towards renting over ownership, in areas such as music, film, furniture.