Migrated LeasePlan Finance Lease

Question 1

What is a migrated LeasePlan Finance Lease agreement?

ald · Accepted Answer

LeasePlan and ALD Automotive are merging their businesses. LeasePlan are now selling their broker introduced customers' vehicles and transferring the benefit of the underlying contracts to ALD. If you took out your Finance Lease contract with LeasePlan, but have now been transferred to ALD, we’ll have been in touch to advise you of this.

Finance Lease is a rental agreement suitable for sole traders, small partnerships (three partners or less), large partnerships (four partners or more) and companies.

We’ll be the legal owner of your vehicle, but there’s an option for you to sell your vehicle on our behalf to a dealership or a third-party company registered on Companies House.

Question 2

Is a migrated LeasePlan Finance Lease agreement covered by the Consumer Credit Act (CCA)?

ald · Accepted Answer

If you’re a sole trader or small partnership (three partners or less) and your agreement’s total payments do not exceed £25,000, your agreement will be covered by the Consumer Credit Act - 1974 (CCA). You can find [information about the CCA here.](targetSelf:https://www.aldautomotive.co.uk/en-gb/faq/q/contract-queries/consumer-credit-act/)

You can check your contract to see if it's covered by the CCA. You can [request a copy of your contract here.](targetSelf:https://www.aldautomotive.co.uk/en-gb/faq/q/contract-queries/copy-of-contract/)

Question 3

Who is the registered keeper of my migrated LeasePlan Finance Lease vehicle?

ald · Accepted Answer

LeasePlan will remain the registered keeper of your vehicle throughout your agreement and ownership can’t be transferred to you.

Question 4

Can I become the owner of my migrated LeasePlan Finance Lease vehicle?

ald · Accepted Answer

No, Finance Lease contracts can be suitable for VAT-registered businesses because the VAT that the rentals attract can be claimed back from His Majesty's Revenue and Customs (HMRC). Due to these tax benefits, the HMRC will not allow us to sell a Finance Lease vehicle directly to our customer.

This this type of agreement gives you the option to sell the vehicle either to:

- A third-party company registered on Companies House; or
- A dealership.
- You may have the option of returning the vehicle to us to sell on your behalf. If you go ahead with this option, fees may apply.

Question 5

Is Vehicle Excise Duty (VED) included in my monthly payments for my migrated LeasePlan Finance Lease vehicle?

ald · Accepted Answer

VED may be included in your monthly rentals.

If it is, we’ll only charge you if there’s any annual increase in your vehicle’s VED rate.

If VED isn’t included in your rentals, you’ll receive a yearly invoice from us to cover the full rate.

Your contract advises if VED is included in your rentals. You can [request a copy of your contract here.](targetSelf:https://www.aldautomotive.co.uk/en-gb/faq/q/contract-queries/copy-of-contract/)

Question 6

What options do I have at the end of my migrated LeasePlan Finance Lease primary term?

ald · Accepted Answer

You have three options:

1. Keep the vehicle for a secondary term
2. Sell the vehicle to a third-party company registered on Companies House or a dealership
3. Return the vehicle to us to sell the vehicle on your behalf. If you go ahead with this option, fees may apply.

If you’d like to discuss these options, please contact us at [customerrelations@aldautomotive.com](targetSelf:mailto:customerrelations@aldautomotive.com) or call us on [03700 011 181](targetSelf:tel:03700011181).  Please include either your vehicle registration number or account reference number in your email or have these details to hand when you call. You can find guidance on [how to find your Account Reference number here.](targetSelf:https://www.aldautomotive.co.uk/en-gb/faq/q/contract-queries/account-reference-number/)

Question 7

What happens if I keep my migrated LeasePlan Finance Lease vehicle for a secondary term?

ald · Accepted Answer

At the end of your primary term, you have an option to move into a secondary term. This allows you to keep the vehicle on contract with us until either party terminates the agreement during the secondary term period.

If you decide to go into the secondary term:

- Your balloon payment (where relevant) will become due at the end of your primary term.
- All outstanding balances must be paid off. Your settlement quote will include any arrears connected to the vehicle.
- Secondary term rentals, sometimes referred to as a ‘peppercorn rental’, will be payable once a year, replacing your regular monthly rental. You can find your peppercorn rental amount in your contract. This will be invoiced and payable in advance.
- You can keep the vehicle in the secondary term until either party terminates the agreement.

- Your agreement can be terminated at any time during this secondary term period.

- To terminate your agreement, you’ll need to sell the vehicle to a dealership, or a third-party company registered on Companies House. You may also have the option of returning the vehicle to us to sell on your behalf, if you go ahead with this option, fees may apply.

Question 8

How do I sell my migrated LeasePlan Finance Lease vehicle?

ald · Accepted Answer

You can sell the vehicle on our behalf to a dealership or a third-party company registered on Companies House. Please be aware that the third-party company must be unconnected to you and your business. There’s no option for you to purchase and become the owner of your vehicle.

We’ll need to process the sale documentation and proceeds, so please contact us prior to selling your vehicle to obtain the paperwork for the sale. Once we receive the payment, we’ll process this to end your agreement and refund any balance due back to you.

Upon sale of the vehicle, you’ll be entitled to 98% of the sales proceeds as stated in your contract.

Please be aware that any balance refund due can take up to 14 working days to display in your bank account.

Please note: this time frame may be increased in certain circumstances. If you haven’t received an expected refund after 14 working days, please contact us on [03700 011 181](targetSelf:tel:03700011181) or at [customerrelations@aldautomotive.com](targetSelf:mailto:customerrelations@aldautomotive.com). Please include your vehicle registration number or account reference number in your email or have these details to hand when you call. You can find guidance on [how to find your Account Reference number here.](targetSelf:https://www.aldautomotive.co.uk/en-gb/faq/q/contract-queries/account-reference-number/)

Question 9

Does my migrated LeasePlan Finance Lease agreement include a balloon payment?

ald · Accepted Answer

Your agreement includes a balloon payment/lump sum, which is due at the end of the primary term contract. The value of your balloon payment can be found in your agreement. Please Note: your balloon payment may be zero value. You can [request a copy of your contract here.](targetSelf:https://www.aldautomotive.co.uk/en-gb/faq/q/contract-queries/copy-of-contract/)

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