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Is it time to rethink your company car provision?
In a recent survey of our network, it was revealed that 57% of FDs and MDs wanted to reduce company car costs.*
There are ways in which dealers can make immediate and material financial savings by operating their employee cars and demonstrators in new ways.
Employee Car Ownership Schemes (ECOS) can help dealers make significant financial savings when compared to a traditional company car benefit.
How can business savings be achieved using an Employee Car Ownership Scheme?
As an Employee Car Ownership Scheme removes the company car tax liability for the employee, these savings can be utilised by the dealer to eliminate or at least materially reduce write down costs on their demonstrators and employee fleet. This realises immediate and material savings for the business.
As an ECOS is not subject to employee BiK, similarly under an Employee Car Ownership Scheme, Class 1A National Insurance Contribution costs are also removed.
As well as savings, our schemes also provide ways to boost incremental registrations and offer the opportunity to create a quality, known used car stock pipeline.
Consumer demand for used vehicles is high and there is a need to create an efficient pipeline of used car stock for this currently lucrative sector. Furthermore, the cost of company car tax influences employees to choose cars that work for them financially, rather than a vehicle which is an attractive used car prospect at the end of the term.
Every employee taking a CBS scheme vehicle selected from a choice list pre-approved by their employer provides an incremental registration. Crucially, at the end of the contract term, this vehicle returns to the dealer as part of a guaranteed used car pipeline, forming a quality consumer offering. These cars provide a plentiful, timely supply of premium known cars with no logistical difficulties.
Employees will retain their employee car benefits, as well as enjoying short-term contract lengths and low repayments when compared to consumer arrangements and no credit reference agency checks.
The CBS Optimiser; Savings Made Easy
The new CBS Optimiser is a tool designed to identify the ways in which dealers can make timely and critical savings for their business, without disruption to business operations or employee benefits.
CBS makes the process simple and easy. CBS will analyse dealers’ existing demonstrator and employee fleet using the CBS Optimiser, before detailing the best solution to maximise savings based on each dealer’s unique business requirements.
Get in touch with our experts;
*Survey results from 218 CBS customers as of January 2021