Car leasing company Vanarama is offering free redundancy and life event cover to its new customers from next month.
The move is likely to encourage businesses to continue investing in company cars during the current economic uncertainty.
The cover means that any customer taking out a new lease from July 1, 2020, will not be charged for the cost of returning a vehicle in the case of redundancy, divorce or dissolution of a civil partnership, disability and death.
Vanarama explained that the government’s easing on lockdown and advice to avoid public transport, where possible, has seen a surge in interest in personal car buying.
Less than 50 per cent of UK driver licence holders own a car and 80 per cent of consumers aged between 25 -35 years old have never owned a car. The leasing company says the demand is there, but the fear of unemployment will no doubt stifle consumer confidence.
Andy Alderson, CEO and founder of Vanarama, said: ‘Over the last few years we’ve seen a dramatic change from ownership to usership and we know that consumers are confident to purchase online, in fact 80 per cent of our car leasing customers have never driven the car before we deliver it to them.
‘But they are doing their research spending on average 14 hours, we have over 1,200 hours of watch time on our site’s video reviews every month.
He added: ‘The Covid-19 pandemic and fears of using public transport has seen a greater swell in interest in car purchase. People want to buy online, they want flexibility and with the introduction of the Vanarama Redundancy & Life Event Cover we are offering them the opportunity to do that with confidence and added security.’
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