Motor Finance caught up with the chief executive of AA Cars, James Fairclough, to discuss the launch of the firm’s personal car leasing product, Smart Lease.
Could you give us a quick overview of the new product and its features?
Go deeper with GlobalData
Smart Lease is an inclusive personal car lease offered by the AA in partnership with LeasePlan UK. For a single monthly price, the customer can drive a fully insured car, with servicing, maintenance, Vehicle Tax and tyres included. Drivers also do not need to make an upfront deposit to take out a lease, and the car will be delivered straight to their door.
One of the main benefits of the AA Smart Lease is that drivers can change their term and mileage at any point during the lease with full transparency about what the change to their monthly payment would be, as specified in their contract.
We know in these challenging times that some people may find that their personal circumstances suddenly change. And so unlike other lease products on the market, the car can be returned without penalty for specific life events, such as if a customer is made redundant.
Why did you decide now would be a good time to launch a personal lease product?
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataConsumers are looking for greater flexibility with how they own and drive cars. Leasing offers all the benefits of a hassle-free driving experience with the flexibility to change their car if they need to. We see leasing only increasing in popularity in the UK, and we’re thrilled to have launched a market-leading product for our members this year.
The rising interest in EVs makes this also a very timely product. Many drivers are considering purchasing an EV for the first time but want to try one out before making a large financial commitment. We have three electric vehicles available for drivers to choose from, and believe that the flexibility and reassurance offered by Smart Lease creates the perfect solution for drivers who are still uncertain about swapping over to electric.
What has the initial feedback from customers been since launching?
We have had a lot of positive feedback from our customers since the launch.
Many have said the fact that everything is included means they have less to worry about, and they feel that it may actually be more cost-effective than owning a second-hand car that may have unexpected repairs.
The fact that they also benefit from enjoying a brand new car has also been a highlight for some of our customers who have never had the opportunity to drive a brand new one before.
What sets AA Smart Lease apart from other providers?
The biggest point of difference compared to other products is that customers can return the car without penalty if their personal circumstances change. This is the case, for example, if someone is made redundant – an issue which has sadly affected many people during the course of the pandemic.
Unfortunately, there will likely be some lingering financial uncertainty in the coming months, and so this feature gives people important peace of mind that if they do find themselves losing their job, they will not need to worry about keeping up regular payments for their car lease as they can return the vehicle.
What other features are on the Smart Lease roadmap for the future?
It is critical that we expand our EV range to cater to all household sizes and major brands. To do that effectively, we must be helping our members make the right decision when they select an EV, with resources and tools that educate and inform.
As for the more transformative features – you will have to wait and see!
