The AA is entering the personal car leasing sector with a new solution, developed in partnership with LeasePlan and including electric vehicles.

Drivers can lease a brand-new car for a fixed monthly cost that includes comprehensive insurance, servicing and maintenance, vehicle tax and VAT

It’s dubbed Smart Lease and will offer brand-new vehicles on 24-, 36- or 48-month contracts, based on transparent monthly payments that include comprehensive car insurance – dependent on certain qualifying criteria such as a clean driving history – plus servicing and maintenance, vehicle tax and VAT.

Drivers can select from 12 different cars, including three electric models – the Vauxhall Corsa-e, Hyundai Kona Electric and the Volkswagen ID.3 – helping drivers to switch to electric vehicles.

Prices start from £290 a month and contracts do not require an upfront deposit.

The product has been designed to be flexible and means in certain situations if a customer’s circumstances change, they can return the car without penalty – a timely benefit during the pandemic.

The mileage plan can also be changed once, at any time during the contract period, with no admin fees – supporting customers where cars are driven more, or fewer, miles than planned.

When the lease ends, the car can be collected or swapped for a new one if the customer signs a new agreement, and any repair costs up to £500 for small scratches and superficial damage will be waived.

It’s the latest solution to be offered under an enhanced partnership between the AA and LeasePlan and will initially target AA customers who have been members for over a year.

Alfonso Martinez, managing director of LeasePlan UK, said: “By consolidating our collective skills and expertise, we have created a much-needed solution for all those who are worried about their personal circumstances changing during these challenging times – particularly around their employment or finances.

“With a range of electric cars available to choose from, it’s also an exciting opportunity for those looking to make the switch to EV for the first time.”