Standard Quotations and Contracts for Leasing Brokers · the B%!˝A guide to standard quotations...
Transcript of Standard Quotations and Contracts for Leasing Brokers · the B%!˝A guide to standard quotations...
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the BVRLA guide tostandard quotations and contracts
for leasing brokers
bvrla.co.uk
Promoting responsible road transport
the BVRLA guide to standard quotations and contracts for leasing brokers
Introduction 3
Leasing Broker Service Agreement 4
Connected contracts 4
Representation 5
Key information 6
Cancellation 7
Cooling-off rights 7
Cancellation fees 8
Data Protection Act 9
Exclusions and limitations 10
The Quotation 11
Additional payment options 12
Conditions of the quote 13
Key facts document 14
Exclusions and limitations 14
Important information 15
Money laundering 16
Further information 17
2
contents
Cover image: © iStockphoto.com/ilbusca
The purpose of this best practice document is to
provide general guidance and information only.
Although every effort is made to ensure that the
content is accurate, the BVRLA cannot accept any
liability whatsoever for any inaccuracy contained
within it, nor for any damage or loss, direct or
indirect, which may be suffered as a result of any
reliance placed upon the information provided,
whether arising in contract, tort or in any other way.
Advice should always be obtained from your own
professional advisers before committing to a
specific action.
BVRLA
River Lodge, Badminton Court
Amersham, Buckinghamshire HP7 0DD
t: 01494 434747
f: 01494 434499
w: www.bvrla.co.uk
© BVRLA August 2011
the BVRLA guide to standard quotations and contracts for leasing brokers
This guide aims to help leasing
brokers draft the terms and
conditions for a standard agreement
to provide leasing broker services
and a quotation for financing a
vehicle. It contains a variety of
model terms which you may wish
to use where appropriate.
TyPICALLy THeRe ARe two separate contracts that your customers may enter into:
1 Leasing broker service agreement – this relates to the brokering service you provide to the customer.
2 Lease or finance agreement – this relates to the agreement entered into by your customer direct with the
lease or finance company.
Leasing brokers normally prepare a quotation document/order form prior to the customer signing the vehicle lease
or finance agreement. The quotation document should aim to set out, in full, details of the vehicle being ordered,
the period of the lease/finance agreement, the amount and frequency of payments payable, annual or total mileage
allocation and any additional services included.
Further information on quotations is provided in the quotation chapter of this document.
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introduction
the BVRLA guide to standard quotations and contracts for leasing brokers
Connected contracts If you provIde a leasing broker service, where you are entering into an agreement with a customer to source a
vehicle for them, then you are advised to keep this aspect of the service separate from either the quotation or the
vehicle lease/finance agreement. This is particularly important if you wish to charge a cancellation fee for your
service.
You should advise your customer that they will be entering into two separate agreements and encourage the
customer to take time to read and understand the information contained in the agreements to avoid disputes arising.
If the broker service and the vehicle lease/finance agreement are treated or interpreted as being a single
arrangement then it may be possible for the customer to cancel both arrangements by giving a single notice.
If the arrangements are deemed to be ‘connected contracts’ for the purpose of Section 56 of the Consumer Credit
Act, then by the customer cancelling the regulated consumer credit agreement it will also automatically cancel any
related agreements. If the broker service is regarded as a ‘connected contract’ agreement, then you will not, for
example, be able to charge a cancellation fee for the broker service.
A good test of whether you have two separate contracts is whether the customer can cancel the contract with you
for providing the leasing broker service before the customer has selected a finance or lease agreement. In addition,
you may wish to include a clause in the agreement which states that it is independent from any future finance
agreement.
See the provision of service section for a sample term.
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leasing broker service agreement
the BVRLA guide to standard quotations and contracts for leasing brokers
Representation If a leasIng broker makes a representation of fact, which the customer then relies on when entering into an
agreement, the leasing company may be assumed to have made the same promises.
If the information provided by the leasing broker is proven to be inaccurate and the customer believes they were
misled they might try to cancel the contract due to the misrepresentation made. Of course, the customer would need
to prove there was a statement they relied on that induced them to enter into the agreement.
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leasing broker service agreement (continued)
Key information for the
leasing broker service
agreement
the BVRLA guide to standard quotations and contracts for leasing brokers
you should Include the following or similar terms in your broker service agreement:
Contact details and provision of service
❱ Customer contact details Full customer name and address, including telephone and email.
❱ your contact details Your company name and address details, VAT number and company registration number.
❱ What is the provision of service? Explain the services you will be providing and the responsibilities you and
the customer have. It may be helpful to specify some services you will not provide in order to avoid confusion.
❱ Payment and cost of your service (if any)
You should include all fees payable by your customer in connection to your leasing broker service.
Terms of payment – how much is payable, when this is payable, how it is payable.
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leasing broker service agreement (continued)
Sample terms
This sample term explains how the broker service is a separate agreement to the vehicle lease agreement and summary of the service
being offered.
❱ By signing this leasing broker agreement you agree that [insert company name] will assist you to find the most appropriate vehicle
finance product(s) and or service(s) that match your stated requirements and to process any order you have made with us.
Please note that this agreement is separate to and not connected to any lease or finance agreement you may enter into.
This sample term limits your liability against losses incurred by the customer.
❱ We cannot accept any responsibility for any losses incurred by you arising out of the contract between you and the finance company and
purported arrangements relating to the supply of any vehicle save to the extent that such loss is caused by our negligent act or omission.
the BVRLA guide to standard quotations and contracts for leasing brokers
Cancellation you should clearly explain to the customer the period of time they have in which to decide whether or not they
wish to go ahead and use your broker service and what your cancellation policy is once this period of time has elapsed
and you have commenced your brokering service.
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leasing broker service agreement (continued)
Cooling-off rights If the agreement has been concluded without any face-to-face dealings (ie over the phone, internet, etc) then the
consumer has seven working days to cancel the agreement without incurring a penalty. This legal right does not extend
to a business customer.
The consumer should be advised about how your cancellation policy works, including methods of cancellation you will
accept (eg in writing or by email), and the point at which the consumer cannot cancel.
If cancellation is still permitted after the cooling-off period, then you will need to clearly explain details of any
cancellation fees you wish to charge (see below for sample term).
If the leasing broker service needs to commence immediately, ie during the cooling-off period, then you should inform
the consumer in writing that their right to cancel will not apply prior to the conclusion of the leasing broker service
agreement.
Sample term
No right to cancel where service starts immediately
❱ By signing this notice you accept and acknowledge that your right to cancel as stipulated under the Distance Selling Regulations is
restricted and is not applicable once we commence performance of the leasing broker service agreement.
the BVRLA guide to standard quotations and contracts for leasing brokers
Cancellation fees IF you WISH to charge a cancellation fee then you must ensure this is stated clearly in your agreement with the
customer, explaining the amount payable, method of payment and time period in which payment must be made.
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leasing broker service agreement (continued)
Sample term
Cancellation policy
❱ If you wish to cancel this agreement before we have received a signed order form, then you will be liable to pay a cancellation fee of £X.
If you cancel this agreement after we have received your signed order form, then you will be liable to pay a cancellation fee of £Y.
If you are a consumer (ie not a business customer) then, in accordance with the Distance Selling Regulations, a cancellation fee will
only be payable once your cooling-off rights, where applicable, have expired.
the BVRLA guide to standard quotations and contracts for leasing brokers
Data Protection Act In order to ensure compliance with the Data Protection Act you must explain to the customer that by entering
into this agreement they consent to the processing and disclosure of their personal data. This includes such things
as name, address, bank or credit card details, telephone number and email address.
You must explain what you will use the data for and how you will store it.
The customer must consent to their personal data being shared with third parties as indicated in your agreement.
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leasing broker service agreement (continued)
Sample terms
Personal information will be processed for the following purposes
(collectively ‘the purposes’):
❱ To check your credit record with credit reference agencies and for fraud
prevention purposes (which will include the supply of your personal information
to third parties for such purposes) should you decide to apply for finance.
❱ We are part of the [insert name] Group and we and our group of companies may
use your personal information to keep you informed by post, telephone, email or
other electronic means about products and services which may be of interest to you.
❱ By providing us with your personal information, you consent to being contacted
by these methods for these purposes. If you do not wish to receive marketing
information from us, please notify us by email at [[email protected]].
❱ For the purposes, we may transfer or disclose personal information to our
professional advisors and to such other parties as we consider necessary or helpful
in the administration of this service agreement, if required by law or otherwise.
Normally, the professional advisors or other parties will be based either in the United
Kingdom or (if outside the United Kingdom) within the European Economic Area.
❱ By entering into this agreement, you consent to the processing and disclosure of
your personal information. You also agree that the purposes for the processing
may be amended to include other uses or disclosures of personal information
following notification to you.
❱ We agree to keep all personal information in a secure environment and will comply
with the Data Protection Act 1998 and any other applicable data protection
legislation currently in force.
❱ If you wish to update or correct any inaccuracies in your personal information, or if
you have any other comments or complaints in relation to this service agreement
or the purchase order, please let us know by email to [[email protected]].
the BVRLA guide to standard quotations and contracts for leasing brokers
exclusions and limitations you should specIfy what you are not liable for, including: any loss of profits, anticipated savings, loss of future
business or damage to the customer’s reputation or goodwill arising from the performance of the agreement.
Your total liability in connection with this services agreement should be limited to the price of the vehicle supplied.
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leasing broker service agreement (continued)
Sample terms
❱ Your statutory rights, including any rights you have as a consumer, are not affected by anything in this agreement.
❱ Nothing in this agreement is intended to limit or exclude our liability for death or personal injury or for fraudulent misrepresentation or any
liability that may not legally be limited or excluded.
the BVRLA guide to standard quotations and contracts for leasing brokers
once the customer has agreed that you will provide them with a leasing broker service you will supply a quotation(s) for them to review, to help
them decide whether they wish to enter into a finance/lease agreement for a vehicle. The quotation should include:
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the quotation
Customer contact details
Customer address and delivery address
Full contact details, including telephone and email
Mileage restriction
Annual permitted mileage
Excess mileage charges (clearly stating the cost per mile)
your contact details
Company name and address details
VAT number
Company registration details
Full vehicle details
Vehicle make and model, including model year where relevant
Colour Options and accessories selected
Roadside assistance Relief vehicle
P11D value CO2 emissions
Maintenance
Details of whether a maintenance
agreement is included and the
responsibilities for maintaining the vehicle.
Additional services and products
Details of any additional services offered, such as
accident management, breakdown and recovery service
and gap insurance.
Payment details
First payment/deposit (date to be paid and amount)
Number of subsequent payments
Method of payment (ie standing order, cheque, direct debit, etc)
Payment amount and frequency
Cost of any other products ordered
Administration charges
First registration fee
Delivery/inspection fee and number plates
Insurance
Details of the customer’s responsibility for
insuring the vehicle and updating the motor
insurance database.
Additional information
Period for which the quote is valid (ie insert expiry date)
Explain what might affect the quote: eg changes in
manufacturers’ prices, finance interest rates, vehicle
availability, government changes to legislation, errors and
omissions, credit approval and taxation changes.
Exclusions: VAT (this may be dependent on type of contract)Road fund licence
Details of whether road fund licence is
included for the duration of the agreement
or just the first year.
the BVRLA guide to standard quotations and contracts for leasing brokers
Additional payment options you MAy WISH to consider the sample terms below. They will not all be appropriate, depending on the type of
payments you accept. In addition, you will want to consider the relevant consumer legislation which will be
applicable when a credit or debit card is used for payment.
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the quotation (continued)
Sample terms
❱ If the transaction is on a ‘cash basis’, cash will be interpreted as being cleared funds before delivery.
❱ Payment by cheque will be required four working days in advance of delivery for clearance purposes.
❱ Payment must be made by bank transfer to our bank account. No order will be placed until cleared funds are received.
❱ Deposit and final payments can be made via bank transfer, debit or credit card.
the BVRLA guide to standard quotations and contracts for leasing brokers
Conditions of the quote IF THe CuSToMeR enters into a separate agreement to finance the vehicle, you should advise them that they will
be entering into an agreement with a finance company.
If the order is for a used vehicle, you will need to consider any specific terms/exemptions. For example, a caveat
explaining that vehicle details are approximate and how existing damage on the vehicle will be treated and
recorded.
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the quotation (continued)
Sample terms
❱ By signing this quotation you agree to be bound by the terms of this quotation.
❱ After we have received your deposit payment and a signed copy of this quotation agreement, but not before, we will place your order
with the supplier on your behalf.
❱ We will confirm receipt of these documents and the placement of your order by email, to the email address provided by you.
❱ We will not be liable to you for any refusal by the finance company to accept your order, save that we will be liable to return your deposit.
the BVRLA guide to standard quotations and contracts for leasing brokers
Key facts document at thIs stage you may also want to consider providing your customer with a key facts document which covers the
key terms of the finance agreement.
The BVRLA provides a best practice guide to help you develop your own key facts document.
It can be downloaded here.
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the quotation (continued)
exclusions and limitations THeSe WILL VARy depending on the service you provide. A few samples are provided below, but you will need to
consider how you handle price variations, your role and responsibilities, and delivery date information.
Sample terms
❱ The CO2 and P11D values are given as a guide only and are subject to change by the manufacturer.
❱ Estimated delivery dates are our best estimate and based on information provided to us and you acknowledge that this could be subject
to change.
❱ The prices quoted will be valid for [insert how long your quote is valid for] and are subject to the agreement being signed and a
deposit being paid within this time period.
❱ After you have signed and returned the quotation the options and price can only be changed by an amendment to the quotation.
❱ We do not make any guarantees as to the quality or performance of any vehicle. Whilst we will bear no responsibility if you are not
satisfied with the vehicle ordered, we will endeavour to liaise on your behalf with the finance company.
the BVRLA guide to standard quotations and contracts for leasing brokers
Important information
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the quotation (continued)
these sample terms may be applicable for concluding your agreement.
Sample terms
Disclosure information/authority
❱ By signing this agreement, you agree that the funder will make a credit agency
search against the hirer/guarantor which will be recorded by the agency.
The funder will only use this information for address verification and underwriting
purposes.
❱ By signing this agreement you authorise [insert leasing broker name] to order
a vehicle to the above specification on your (or your company’s) behalf.
❱ All applications to the funder are subject to their approval and their right to require
a guarantee is reserved.
❱ All the terms and conditions of the contract hire agreement shall apply to the
above quotation.
Force majeure
❱ Our performance under this agreement will be excused if we are unable to
perform due to any cause beyond our reasonable control (including, but not
limited to, any labour dispute, act of God, war, act of terrorism, riot, civil unrest,
fire, flood, storm, or any computer or internet-related failure, error or delay).
Governing law and jurisdiction
❱ This agreement is governed by English [or Scottish] law and both parties hereby
submit to the exclusive jurisdiction of the English [or Scottish] courts.
Statutory/third party rights
❱ Your statutory rights, including any rights you have as a consumer, are not
affected by anything in this agreement.
Third party rights under the Contracts (Rights of Third Parties) Act 1999 are
hereby excluded.
the BVRLA guide to standard quotations and contracts for leasing brokers
Money laundering IF you ACCePT cash deposits you will need to confirm that the following checks have been carried out on
the customer:
1 Full driving licence and counterpart checked with the customer’s current home address details.
2 Electronic confirmation of at least one of the following:
❱ Customer’s current residence via the electoral roll.
❱ Current credit data at the customer’s current address on existing lending.
❱ Customer’s identity via a credit reference agency or similar.
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the quotation (continued)
the BVRLA guide to standard quotations and contracts for leasing brokers
These BVRLA Fact Sheets provide
further information on topics covered
in this document.
BVRLA members may download
them from the association’s website
or by using these links.
Consumer Credit Agreements Concluded electronically (Fact Sheet 556)
Distance Selling for Leasing Brokers (Fact Sheet 553)
Financial Products Sold at a Distance (Fact Sheet 550)
Money Laundering Regulations (Fact Sheet 548)
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further information
bvr la .co .ukbvr la .co .ukbvrla.co.uk
Promoting responsible road transport
British Vehicle Rental And Leasing AssociationRiver LodgeBadminton CourtAmershamBuckinghamshireHP7 0DD
T 01494 434747 F 01494 434499 e [email protected]