Drivers opting out of the company car scheme can become a problem for many company directors if an alternative to the company car is not affordable and available.
That’s the view of Shaun Redhead, who heads up Grosvenor’s personal contract hire team. Grosvenor and Select Car Leasing have been working as vehicle leasing partners since 2019, with Select providing the personal leasing platform for the Kettering based business.
According to Shaun, when moving drivers to a cash allowance its essential that a strong personal leasing scheme is in place, affordable and simple to access to avoid drivers buying an unsuitable vehicle for use at work. “The problem many companies have is that as drivers opt out of the company scheme, taking cash in lieu of a car, employers end up handing over an amount of money every month with no control over how it is spent,” explains Shaun.
“That money is clearly meant to be for the individual to fund a vehicle that enables them to continue to do their job, yet it often ends up being used for other things leaving the employee with a vehicle that’s old, poorly maintained or not fit for purpose.
“A means of overcoming this is for companies to offer a strong personal contract hire (PCH) scheme that replicates the benefits of a company vehicle, with low deposits, maintenance cover, road tax, and breakdown cover.
“By offering a well-promoted PCH solution, drivers will be more inclined to use their monthly allowance to fund a new car. This has advantages for ‘grey fleet management’, the term used for drivers who use their own vehicle for business mileage, however its always important to have robust processes in place.”
Grosvenor launched its personal contract hire solution in 2019 in partnership with Select Car Leasing and since then the PCH team has already doubled in size.
“The uptake has been beyond our wildest expectations,” said Shaun, “with our corporate contract hire customers offering their drivers a Grosvenor PCH solution if they decide to take the cash alternative.
“It means the driver moves quite seamlessly from Grosvenor corporate contract hire to Grosvenor personal contract hire, with all support provided for both the corporate and personal schemes from our offices in Kettering.
“As a result, this makes grey fleet management far easier as drivers continue to travel for business in a new, often low emission, well-maintained vehicle irrespective of whether it’s a company or private car.”
Businessman, Andrew Bird, recently had his new Audi delivered on a personal lease and said, “I looked at personal contract hire for the first time and the prices from Grosvenor were competitive - some with options for a quicker delivery.
“I cannot recommend Grosvenor enough in providing an exceptional service. They were very helpful and made the process as seamless as possible.
“I spoke to one of their personal contract hire experts and felt well guided throughout my initial enquiry. When I placed my order for my new Audi A5 I was provided with an easy-to-use online portal for all of my documentation and updates along the way until my new car was on my driveway.”
Grosvenor offers a personal contract hire solution either direct to employees, their friends and family, or via a more formal Affinity scheme.
For more information, please contact the Grosvenor team on
01536 536 666 or email us on PCH@Grosvenor-leasing.co.uk
Article originally published by Grosvenor Leasing, a partner of Select Car Leasing on 04/02/21: