Motor finance solutions for deployed service personnel

The Finance & Leasing Association (FLA), the National Franchised Dealers Association (NFDA) and the Ministry of Defence (MOD) are today launching a new protocol to help ensure that motor finance works better for service personnel who are deployed overseas.

FLA lenders who participate in the protocol will allow a financed vehicle to be taken overseas for the remainder of the finance agreement, so long as the vehicle is comprehensively insured while there. If service personnel do not want, or are unable, to take the vehicle with them on deployment, the motor finance provider will use their best endeavours to find a solution that is acceptable to the customer.

The FLA will also include these principles in the Specialist Automotive Finance learning material which used by dealers, brokers, and motor finance provider staff across the industry.

While the protocol itself is new, it will operate as part of the existing Armed Forces Covenant – now in its 11 year – the objective of which is to encourage public or private businesses to pledge that service personnel and their families will face no disadvantage compared to civilian customers.

Adrian Dally, Director of Motor Finance at the FLA said: “It is good to see the informal help already offered by lenders shared more widely as part of this new protocol.

“Identifying yourself as service personnel early in the process of finding motor finance will ensure that your circumstances are taken into account, and that your lender of choice is following the protocol.”

Sue Robinson, Chief Executive of the National Franchised Dealers Association (NFDA), added: “Franchised dealers strive to ensure all customers receive the highest level of service and the NFDA are extremely pleased to sign up to the new Armed Forces protocol.

“The new protocol will allow dealers to build on their existing standards of service by offering bespoke financial support and solutions for our armed service personnel.”