A new protocol was launched in June 2022 to help ensure that motor finance works better for those who are assigned overseas.


This provision, jointly published by the Finance & Leasing Association (FLA) and the National Franchised Dealers Association (NFDA), will operate as part of the existing Armed Forces Covenant, so that personnel are not disadvantaged compared to civilian customers.


The key commitments are as below:
  • FLA lenders who participate in the protocol will allow a financed vehicle to be taken overseas for the remainder of the finance agreement, so long as the vehicle is comprehensively insured while there. Where Service personnel do not wish to/unable to take their vehicles or are deployed overseas before the end of a motor finance agreement, motor finance providers should use their best endeavours to find a solution that that is acceptable to the customer.
  • The FLA will also include these principles in the Specialist Automotive Finance learning material which used by dealers, brokers, and motor finance provider staff across the industry.
  • For Service personnel, they should notify their Service commitment to the retailer when seeking financial arrangement. If possible, give an indication of the likelihood of receiving an overseas assignment.
  • The Ministry of Defence (MOD – Armed Forces People Support team) and the FLA will keep the effectiveness of this Protocol under regular review, exchange information on its operation, and support each other’s functions under it.
  • Please visit this page for full details.


This news is a result of the NFF advocating on your behalf.


Last April, we were contacted for advice by a Service personnel who was due to begin a short notice draft in Portugal. His vehicle was under a Personal Contract Purchase (PCP) agreement. At the time that he took out the PCP, he was advised verbally that overseas postings would not be an issue. However, the company informed him that this is not possible upon notifying his intention. Although the Service personnel had written to their dealership and finance provider, he had to take a loan to buy the car outright.


With his permission, our team took his lived experience to the MOD and the Defence Relationship Management (DRM) team, alongside other stories and feedback from the wider Service community.


We are delighted to share this positive news story with you. The NFF cannot influence changes without your input, please contact us.