With Every Birthday It Might Get Harder to Lease A New Car

We've all heard that obtaining loans becomes more difficult as we age, and even leasing a car can be increasingly challenging.

Without knowing the exact data that financial and insurance providers use to manage risks associated with older populations, being denied a car lease on a personal level can feel frustrating and even discriminatory.

In many countries, whether it is illegal and considered discriminatory to deny older people access to leasing contracts, such as for cars, depends on specific laws and regulations governing discrimination and financial services.

Switzerland

In Switzerland, there is no comprehensive anti-discrimination law specifically addressing age discrimination in the context of financial services like leasing. Leasing companies may set their own criteria, including age limits, based on risk management and financial considerations. This practice is not explicitly prohibited by Swiss law.

European Union

In the European Union, the Equal Treatment in Employment and Occupation Directive addresses age discrimination, but its focus is primarily on employment. There are no specific provisions that directly address age discrimination in access to financial services like car leasing.

United States

In the United States, the Equal Credit Opportunity Act (ECOA) prohibits discrimination based on age in credit transactions. This means that denying a leasing contract solely based on age would be illegal. However, lenders can consider age as part of their risk assessment if it is one of several factors and not the sole reason for denial.

United Kingdom

In the UK, the Equality Act 2010 protects individuals from discrimination based on age in various areas, including the provision of goods and services. Denying a car lease purely based on age without a valid risk assessment could be considered discriminatory.

We understand that risk management is essential to the financial services and insurance industries and there may not be an easy solution. Nevertheless, we would welcome it if the age criteria alone did not exclude older demographics.

In fact, many older individuals tend to be more affluent and have better creditworthiness than younger people. We wonder if offering new insurance and financial services, along with niche products for older populations across various income segments, could be a lucrative business opportunity.