NEW car deliveries and lease deals have stalled during the Coronavirus outbreak not in small part due to deliveries drying up.
Logistics companies have ceased deliveries to protect drivers as well as to adhere to the Government’s wishes to cut unnecessary journeys.
There are some calls from within the industry for dealerships and other delivery agents to start moving vehicles again in order to unclog the thousands of cars and vans that are congesting the automotive supply chain.
The Department for Transport has made it clear in a letter to the logistics sector, that logistics, including the collection and delivery of vehicles, should carry on during the lockdown, provided that it can be done in accordance with Coronavirus safety guidelines.
The SMMT, Finance and Leasing Association and the BVRLA have produced best practice advice in the hope that vehicle deliveries can start to pick-up.
The government has said it wants all supply chains to continue to the greatest extent possible.
Getting vehicles moving could ensure that businesses and individuals can pick-up where they left-off as soon as the lockdown ends.
Leasing Broker Federation members are getting many inquiries about vehicle deliveries.
Rivervale Leasing said that all deliveries of new vehicles have currently been postponed.
It added: “These circumstances will be periodically reviewed by individual manufacturers and logistics companies. We will be able to advise more once further communications are released.
“This could also impact on vehicles due for transportation to the dealer network as many dealer groups are also closed.
Vehicles on order may also be impacted as the majority of worldwide manufacturing plants are currently on lockdown.”
Leasing companies are also telling customers that they can formally extend the contract on a vehicle for up to 12 months.
Rivervale said that customers can also order a replacement vehicle for future delivery.
“In this instance, we are able to approach the leasing company to see if they would be happy for you to retain your current vehicle until the delivery of the new one.”
What about customers who are unable to meet their monthly payments during the lockdown?
The LBF said they should be advised to speak to their finance provider so as not to default on payments and receive late payment charges or negative credit ratings.
Leasing companies will have different offerings dependent on circumstances.
Whilst we are unable to advise on individual cases, we can offer contact information and support for you should it be required.
Another FAQ being received by Rivervale is whether a vehicle can be returned. This depends on the type of finance.
Under a Personal Contract Purchase or Hire Purchase agreement, it may be permitted to hand back a vehicle to the finance company as long as 50% of the loan has been paid off, including any deposit, interest, and fees.
If however, there is more than 50% of the loan left to pay, the customer may need to pay the difference.
If a vehicle is leased on a Contract Hire agreement, an early termination quote will need to be requested – typically, this normally equates to around 50% of any outstanding rentals.
