Employee Benefits

The cost efficient way for you to get a new car through your employer.

It’s cost effective:

Impressive income tax, NIC¹ and HSCL² savings – average savings of 30% to 45% of the salary sacrificed; It’s cheaper than a personal lease because you benefit from manufacturer discounts and VAT savings offered via corporate hire; and Lower running costs – electricity is much cheaper than either petrol or diesel per mile.

A company car offers:

Fixed cost, hassle free motoring with maintenance, insurance and breakdown included; No risk of an adverse residual value or unexpected maintenance costs.

The feel good factor:

Employees contribute to a cleaner environment for themselves and their families.

No impact on personal credit and no deposit required:

To sign up for the scheme, employees do not need to have a deposit ready, or a large sum saved for an initial rental. All the monthly rentals are the same, starting in month 1 and ending in month 24 or 36 or 48, depending on the term chosen. At the end of the contract, if the car is handed back, the employee can take out a new agreement without needing to worry about large payments being made.

Because the vehicle is associated with the business, there is also no need for the employee to undergo a credit check, saving a hard search on their credit history and potential disappointment.

A brand-new car every 2 or 3 years:

Employees will be eligible for a new car every 2 or 3 years, depending on their contract type. Whilst there is the option to purchase at the end of the agreement, by upgrading regularly, employees can stay up to date with current vehicle technology as well as the latest battery ranges for electric and hybrid models.

Everything is included, except fuel/charging³:

The Salary Sacrifice Scheme takes the hassle out of motoring. Comprehensive insurance, servicing, repairs, tyre replacements/repairs, comprehensive breakdown cover and road tax³ are all included in the monthly rental. This allows for easy budgeting because most of the time the only additional expense employees will face is the cost of fuel or charging - that's it.

When the vehicle comes up for servicing or needs repairs, there is simply one number for the employee to contact to arrange everything, at no extra charge.

Considerations for employees

• Level of savings available.
• Brand new environmentally friendly car to drive – feel good factor!
• Requires a change to employment contracts.
• Implications of committing to a long term financial obligation.
• Eligibility:-
  Full time, part time, temporary, probationary.
• Insurance criteria.
• National Minimum Wage.
• Impact on other employer provided benefits.
• Impact on state benefits, child maintenance payments and student loan repayments.
• Possible impact on pensions and mortgage.
• Range and charging anxiety.

What isn't covered?

Employees are responsible for:

• Parking fines, congestion charges, etc.
• Early termination or excess mileage costs
• Maintenance outside of your agreement
• End of contract damage

Requirements

To be eligible, employees must have completed at least 6 months of employment with you to qualify. They must also consider whether they are going to remain in your employment during the 2 or 3 years contract that they choose – as with any retail/personal finance arrangement, there could be penalties should they voluntarily leave employment before the end of the contract period.

¹ NIC - National Insurance Contribution
² HSCL - Health and Social Care Levy
³ Road Tax (Vehicle Excise Duty) included at the current rate at time of quoting. Future increases will be invoiced seperately as they fall due.