A lessor is someone who leases out a property or item to someone else.


What is a lessor?

In simple terms, the lessor is the company that provides the product you are purchasing with finance or leasing. In a finance agreement, there are generally three parties. You, the customer, the lessor, who you are getting the product from (in our case a car), and the lender who provides the money for you to get access to the vehicle without paying the car’s price in full.

In some cases, the lessor and lender will be the same party, so they will be providing the finance for you to spread the cost of the vehicle. But a large number of finance products will have a third party act as the finance provider. This can be for legal reasons, and also because many lessors do not have the correct licence or desire to lend money as part of their service.


How does a lessor affect my finance package?

The lessor’s main responsibility is to provide the product you are financing. They will set the price and arrange delivery of the product once financed. When you start the finance process, the lender will examine the lessor to see if they are a genuine and reputable company to work with. Even if you have found the ideal car at the ideal price, there’s no guarantee that the lender will agree to finance the vehicle. So be aware when searching for your car.


When will I see the term lessor?

You are most likely to see the term lesson on any financial agreements or contracts that are drawn up for your finance package. In all Financial Conduct Authority (FCA) regulated finance providers, such as Creditplus, you will be given a full breakdown of all the costs related to the package you are about to take out. You should see any charges set by the lessor in this document.

Before you agree to any finance package, you should read the contract carefully to see what’s included. Pay close attention to anything related to the lessor and lender, as they are the parties you are entering into a contract with. If you have any questions, you should speak to the customer advisor you are dealing with and they will explain this to you.

Remember, if you are ordering online from an FCA approved dealer, you have 14 days to return the product you have financed and get a full refund. Even so, you should still read the contract carefully before you proceed.


What can I do if I have an issue with my lessor?

It is very unlikely you will have an issue with the lessor during a finance agreement. Most of your correspondence and communication will be with the lender. However, in the event there is some issue with the lessor, you should speak to the lender first. If you feel that the issue is not going to be resolved, you can then proceed to contact the FCA directly. But you can only do this once you have exhausted all options with the lender and lessor directly.

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