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CAR LEASING SCHEME

By Kyle Rose,2014-05-15 13:40
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CAR LEASING SCHEME

The county council operates both a standard and subsidised car leasing

    scheme.

    1. Who is eligible to take part in the standard (non subsidised)

    scheme?

    Any employee may be eligible provided that they are:

    ? a permanent member of staff; or

    ? a temporary member of staff with a (remaining) contract of at least 3 years;

    and

    ? are a designated essential or casual car user, holding a current driving

    licence.

    Employees will be charged the full on-the-road cost of the lease as charged to the county council. The net cost to an employee on the unsubsidised scheme will be the difference between any travel payments received and the cost of the lease.

    2. Who is eligible for the subsidised scheme?

    Any employee who meets the above criteria, and who is:

    ? graded PO12 or above; or

    ? working within a defined key skill shortage post.

    Employees on the subsidised scheme, who are essential users will be given a credit for the monthly lump sum allowance, with the net cost allocated 60:40 (county council : employee). No credit is given for business mileage; in other words such employees can claim a subsidised user mileage rate.

    However, any subsidy entitlement will be lost if the car cannot be used because the employee is absent for more than 5 months due to training, secondment or illness.

    3. What is covered by the car lease schemes?

    ? The lease schemes cover:

    - the new vehicle;

    - comprehensive maintenance, repair and service;

    - break-down cover;

    - comprehensive insurance;

    - business use; and

    - private use of the vehicle up to 14,000 miles per annum.

    ? They do not cover:

    - damage arising through weather, abuse or neglect.

    ? Employees must pay for:

    - all fuel, together with oil and other fluids required between

    servicing or repairs; and

    Policy C2 Version 1.1

    - any excess due in respect of any insurance claim.

    Re-imbursement will be made for official journeys at the appropriate mileage rate.

    4. What other terms apply?

    The car lease normally covers a period of three years.

    Employees who have an outstanding car loan from the council must repay the loan in full immediately the existing car is disposed of, or within three months of delivery of the lease car. Contributions are deducted from the employee’s salary

    The car must be available for official use at all reasonable times. It may be used for social and domestic purposes by the user and his/her immediate family who are properly qualified drivers. This includes provisional licence holders provided they are suitably accompanied. The employee can also apply for additional drivers to use the car. All drivers must be approved by the Head of Insurance.

    The car can be driven abroad, subject to confirmation from the Head of Insurance who will provide the appropriate documentation to the employee. Whilst in the scheme, employees cannot:

    ? opt out during the three year contract unless there are exceptional reasons;

    or

    ? take out a council car loan; or

    ? claim full essential/casual car user allowances.

    5. How does an employee apply for a lease car?

    They should first obtain an application form from Human Resources. Once completed and returned, this will then be forwarded to the Head of Finance for approval. If approval is given, the employee will be told what their contributions will be and the anticipated delivery date of the car. They will then need to sign a hire agreement, which authorises the appropriate deduction from their salary. 6. What if the employee leaves before the end of the 3 year lease period?

    If the employee’s service is terminated by the county council, the car can be returned without penalty.

    If the employee resigns, a termination charge will be made and the car has to be returned no later than noon of the last day of employment. However, if the employee is moving to another authority, arrangements may be made to transfer the vehicle to the new authority.

    If their service has ended because of retirement, the lease agreement may be continued until the end of the contract period. This would be without any subsidy or allowance.

    7. What are the employee’s responsibilities under the scheme?

    An employee must:

    ? ensure they can meet the financial commitments for the full three year term; Policy C2 Version 1.1

? ensure the reasonable security of the car at all times;

    ? keep the car in a clean and roadworthy condition and to conform to all

    instructions and recommendations in the manufacturer’s handbook;

    ? provide full details of any accident and comply with any instructions arising

    from any accident, claim or proceedings;

    ? not sell or exchange the vehicle during the period of the lease;

    ? keep within the terms and conditions of the insurance policy;

    ? pay any fixed penalty fines they might incur and any associated county

    council administration costs.

    If you would like further advice, please speak to Human Resources. They can

    provide copies of the current Employee’s Guide, which outlines full details of

    the car leasing scheme.

    Policy C2 Version 1.1

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