Car sales peak in March and September due to the release of the new number plates. As a result, cars with older number plates start to depreciate as they are perceived to be a year old. Many of your employees may be looking forward to the launch of the 16 number plates in March and consequently, considering the ways they can save money.
Offering a car scheme can enable your staff to have a brand-new, low emission car for less and provide your business with access to National Insurance savings, as well as helping with CSR initiatives. Offering a scheme during this popular month for car sales is likely to maximise on uptake, making it the perfect time to put in place.
How the schemes work
Your employees select a vehicle and have monthly payments deducted from their salary for 2-3 years. At the end of the lease, they have the option to purchase the car, return it or lease a new one.
The scheme offers employees a one payment solution that covers everything except fuel. MOTs, servicing, tyres, tax and insurance all covered by the scheme. Any organisation, irrespective of size, can participate in the car schemes and they are often cost neutral to provide. Companies should be aware that all schemes are different and make sure they get the best offering from their employee benefit provider.
Louise Wesley, Operations Director of Busy Bees Benefits, comments; “27% of UK employees state a car incentive scheme as their ideal perk, according to a study by the Institute of Leadership and Management. “This comes as no surprise because purchasing and maintaining a vehicle continues to be very costly for most employees. “Offering a scheme that decreases the cost of buying and owning a car can aid in retention and employee engagement.
“In addition, providing employees with safer, more modern vehicles can help with your duty of care and affords better management of your 'grey fleet' as vehicles are brand-new and fully road legal,” she concluded.