Fleet funding company Alphabet has become the
latest to tout its salary sacrifice scheme as the trend for such
services grows across the UK.
The BMW subsidiary has been offering the
service, which it refers to as “motivational leasing”, since early
2009 but is now keen to make itself known to customers after a
number of departures from the market, according to director Mark
Sinclair.
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Sinclair said: “Recently, a number of
competitors have gone out of the market place, so we thought we
should explain what we’re doing – we’ve published a guide to
give employers a picture of motivational leasing and highlight what
differentiates us in the market.
“We package up the benefits and provide the
finance and the management of the vehicle.”
Alphabet joins the likes of Tusker and
LeasePlan UK in a market buoyed by an upsurge of interest as
customers seek alternatives to car ownership.
The schemes allow employees at a variety of
companies – who may not otherwise be eligible for a company vehicle
– to give up part of their salary in exchange for a car, whose
lease is paid for by the employer.
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By GlobalDataSinclair added: “Leasing a car through this
sort of scheme has additional benefits as people won’t have to be
assessed for credit and they won’t have to put a deposit towards
the car.
“It’s a corporate contract with the employer,
not with them.”
Alphabet has a 46,000-strong fleet, including
cars and some light commercial vehicles, and is based in
Hampshire.
Leases are usually about three years, with
mileage capped at about 10,000 miles a year, and fees for damage or
overstepping the mileage limit.
