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, and their families.

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 applies to existing motor finance agreements and will operate as part of the existing Armed Forces Covenant – now in its 11th 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.”

 Note to editors:

1. The Armed Forces Covenant is a pledge by the nation that those who serve in the Armed Forces, whether regular or reserve, those who have served in the past, and their families, should face no disadvantage compared to other citizens in the provision of public and commercial services.
2. Service personnel account for about 0.4% of the economically active UK population and, of these, typically less than 6% are serving overseas. Germany, the Sovereign Base Areas in Cyprus, Gibraltar and Belgium currently account for the majority of overseas postings. These are locations where it is usually appropriate for service personnel to take their vehicle.
3. In 2021, FLA members provided £132 billion of new finance to UK businesses and households. £101 billion of this was in the form of consumer credit, over a third of total new consumer credit written in the UK in 2021. £45 billion of it supported the purchase of new and used cars, including almost 92% of private new car registrations.
4. For media enquiries, please contact the FLA press office on 020 7420 9656.