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THE LEASED CAR SCHEME

By Vincent Russell,2014-05-18 16:11
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THE LEASED CAR SCHEME

    CAR LEASING SCHEME

    2.1 SUMMARY

    ? a car of the employees choice, subject to certain restrictions (see below), on a 3 year contract.

    ? all servicing and mechanical repairs including replacement of tyres, exhausts, batteries etc. except

     if caused by neglect or abuse by the employee.

    ? Road Fund Licences

    ? breakdown cover

    ? comprehensive car insurance

    2.2 COST TO EMPLOYEE

     The cost to the employee will depend on the car chosen, the number of private and business miles to

    be travelled and the level of allowance paid by the Council.

TABLE OF ALLOWANCES

     Band Band Band Band Corporate Chief

     A - I J K L & above Directors Executive

    Engine up to 1450cc

    Casual Users n/a 1800 2150 3500 4000 5000

    Essential Users <3600 miles 1690 2590 2765 3500 4000 5000

     3600 - 5400 2110 3010 3185 3500 4000 5000

     5401 - 7200 2520 3420 3595 3500 4000 5000

     7201 + 2740 3640 3815 3500 4000 5000

Engine over 1450cc

    Casual Users n/a 1800 2150 3500 4000 5000

    Essential Users <3600 miles 1980 2880 3055 3500 4000 5000

     3600 - 5400 2460 3360 3535 3500 4000 5000

     5401 - 7200 2940 3840 4015 3500 4000 5000

     7201 + 3200 4100 4275 3500 4000 5000

     The calculation of the contribution payable by the employee will be determined by the Council on the

    following basis:

     Cost to the Council of hiring the car chosen by the employee, for the number of private miles

     specified by the employee.

     less

     The allowance to which the employee is entitled in accordance with the table at 2.2 above.

     plus

     A contribution towards the cost of insurance

    The amount due will be collected via monthly deductions from the employee’s salary throughout the

    full period of the agreement.

2.3 COMPANY CAR TAX

     Company Car Tax will be collected by the Inland Revenue via an adjustment to the employee’s tax

    code. The amount of tax is dependent on the list price and the CO2 rating of the chosen vehicle.

    Any contribution made towards the private use of the car may be offset against the Company Car Tax

    liability.

    Company Car Tax liability is a matter over which the Council has no control. It is possible that the

    existing legislation may be subject to change during the life of any lease agreement that you enter into.

    2.4 INSURANCE

     The vehicle will be insured under a fleet policy arranged by the Council, the employee will be required

    to complete an Insurance declaration form. The following general terms will apply:

    ? The insurance will cover the hire car and any temporary replacement vehicle provided by the

    Council

    ? Insured drivers will be the employee and their partner. It may be possible to extend the cover to

    other drivers but this may involve the employee in additional costs.

    ? The employee will be required to make a contribution towards the cost of insurance.

    ? An additional premium may be required if the employee or a named driver is inexperienced or

    has committed a motoring offence.

    ? The excess payable by the employee in the event of a claim will be dependent on the rates from

     the insurance company from time to time. Details of excesses are available on request.

    ? The excess is payable in all cases regardless of fault.

    ? Very limited cover is provided in respect of loss or damage to personal property in the car and

     individuals are advised most strongly to make their own arrangements for cover of this nature.

    ? The car must not be used for hire, reward, racing, rallies or any other sporting competition.

    If the car is stolen, damaged or an accident occurs involving the car, the employee must contact the

    Insurance Section of the council’s Legal and Administrative Services Unit.

2.5 CHOICE OF CAR

     You may choose any standard make or model of car under the scheme subject to the Council’s

    approval. However, where applicable, vehicles must be commensurate, in the opinion of the Head of

    Service, to an employee’s normal duties under his employment contract with the Council.

    Special edition cars may be included, although the Council reserves the right to exclude certain

    models.

    The sourcing of vehicles will be carried out by the Contract Hire Company and therefore in no

    circumstances shall the hirer make any commitment for a particular car direct with a dealer.

    You should be aware that certain vehicles could have very long delivery delays. Any additional costs

    involved in providing a temporary car during such periods would be payable by the employee.

    2.6 SERVICES INCLUDED

     The following services are included and payment is the responsibility of the Contract Hire Company

    or the Council:

    ? All service and maintenance costs at an approved garage. Please note that if as a result of an employee failing to have the vehicle serviced in accordance with the manufacturer instructions

    additional repair costs are incurred, the employee will be recharged by the Council.

    ? Membership of an appropriate organisation to provide 24 hour emergency breakdown facilities. ? Road Fund Licence for the term of the agreement

    ? Replacement vehicle is the car is off the road for in excess of 24 hours as a result of mechanical failure or 48 hours is as a result of accidental damage.

    ? Insurance (subject to a contribution from the employee)

A guide to servicing and maintenance will be provided by the Contract Hire Company. Employees

    must adhere to their instructions and those given in the manufacturer handbook.

    2.7 EMPLOYEE RESPONSIBILITIES

     The responsibilities of the employee are to:

    ? ensure that servicing and maintenance of the car is carried out in accordance with the manufacturer instructions. This includes checks of the oil, water, brake and any other fluid

    levels, tyre pressures and condition. The employee is liable for the cost of oil required between

    services.

    ? ensure that Road Fund Licences are received and displayed by the due date

    ? keep the interior and exterior of the car clean and ensure that it is in a road worthy condition at all

     times

    ? take all reasonable steps to ensure the security of the car

    ? ensure that at the end of the agreement period the car is returned, in good and clean condition with regard to age and mileage, to the Council Offices in Market Street or any other location

    reasonably specified by the Head of Finance.

    ? pay all fines, including fixed penalty tickets, arising from traffic offences involving the car and

     parking fines. Where the Council, under the legal requirements for the payment of such fines, is

     required to pay the fine as a result of the hirer’s failure to do so, the fine plus the leasing

     company’s administration fee will be recovered from the employee.

    2.8 OWNERSHIP & USE

    The ownership of the vehicle remains with the Contract Hire Company. The vehicle may be used in

    connection with West Berkshire District Council business and any normal social and domestic

    purposes, including overseas travel subject to prior approval. Prior approval is also required for use with a caravan or trailer but it is not normally withheld.

     Additional extras such a tow bars and sunroofs may only be fitted with the prior agreement of the

    Head of Finance. Accessories may also be fitted after delivery by main dealers only, at the employee’s expense, by prior agreement with the Head of Finance. The costs of removing accessories and

    returning the car to its original condition at the end of the hire agreement must be borne by the hirer and may be recovered by deductions from the hirer’s pay.

When approved accessories remain fitted the additional cost of supplying these extras or their value

    will not be reimbursed to the employee by the Council at the end of the hire agreement.

    2.9 BUSINESS MILEAGE The cost of mileage undertaken on approved Council business will be reimbursed. The appropriate

    rates are contained in the Councils Conditions of Service document. The rates will be subject to

    periodic reviews to ensure that they continue to reflect the prevailing cost of fuel.

    2.10 EARLY TERMINATION BY THE EMPLOYEE

    The agreements are for a period of 36 months and all costs have been calculated on that basis.

In the event of an employee terminating the agreement during the first 18 months they will be liable to

    a charge of 6 times the full monthly hire cost of the car. This charge will be made in all cases other

    then where the employee’s employment is being ended by the Council as a result of ill health,

    redundancy or efficiency.

Under the terms of the Consumer Credit Act, the employee may terminate the hire agreement after 18

    months. In such cases the employee will not be permitted to participate;

     in the Contract Hire Scheme for a period of 3 years from the date the agreement is ended

     the Cash Alternative Scheme until the expiry date of the original car leasing agreement

     the Car Loan Scheme until the expiry date of the original car leasing agreement

Upon the early termination of the agreement the employee shall forthwith:

    ? return the car as directed.

    ? reimburse the Council for the cost of any repairs that are necessary to bring the car into a

    reasonable condition.

    ? reimburse the Council for any costs incurred as a result of the private mileage travelled exceeding

    the level specified in the agreement

    2.11 EARLY TERMINATION BY THE COUNCIL

    If any of the following events occur the Council will be entitled to terminate the hire agreement

    immediately and recover possession of the car.

(a) the Council’s entitlement to possession of the car ceasing for any reason whatsoever including, for

    instance, if the Council’s agreement with the Contract Hire Company is terminated for any reason.

    (b) the car for whatever reason becomes, at the sole discretion of the Council, or the insurers or the

     Contract Hire Company uneconomic to repair and/or maintain.

    (c) the loss, whether by theft or otherwise, of the car for 3 consecutive months.

    (d) the termination of the employee’s contract of service with the Council.

    (e) the withdrawal of the employee’s driving licence by reason of ill health.

    (f) the employee commits any breach of the Contract Hire Agreement

    (g) the employee commits an offence which results in disqualification and withdrawal of her/his

     driving licence.

    Where the termination is by reason of (f) or (g) above, the employee shall pay to the Council a sum representing the amount of all losses, costs and expenses incurred by the Council which arise directly or indirectly from such termination.

    2.12 END OF CONTRACT

    If the hire agreement does not terminate for any other reason it will come to an end at the conclusion of the period of hire agreement. At the end of the agreement the employee shall forthwith:

    ? return the car as directed.

    ? reimburse the Council for the cost of any repairs that are necessary to bring the car into a reasonable condition.

    ? reimburse the Council for any costs incurred as a result of the private mileage travelled exceeding the level specified in the agreement

    The standard period of hire is 3 years and agreements will not be extended other than in exceptional circumstances. Employees wishing to enter into a new leasing agreement must ensure that they submit their application at least 6 weeks prior to the expiry of their existing agreement.

    2.13 HOW TO APPLY

    The Contract Hire Scheme is administered by the Exchequer Service and enquiries about the scheme, requests for prices or application forms should be made to them.

When the employee has selected a vehicle they must complete an application form and obtain the

    approval of their Head of Service. The completed application form should then be taken to Exchequer Service in order that the details can be checked. At that point the employee will be required to sign a legal agreement and then an order will be placed with the Contract Hire Company. It is a requirement of the Consumer Credit Act that the legal agreement between the Council and the employee is signed on Council premises at that stage.

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