Individuals will take a loan to buy the car and a 'care' package which includes insurance, maintenance and servicing. Over a two-year period the outstanding balance on the loan will reduce to the expected value of the car after two years.
Drivers will benefit from Barclays' corporate purchasing expertise when buying their car, and enjoy discounted interest rates on their loan - these rates are above the Inland Revenue's minimum level and therefore, the drivers do not incur 'benefit in kind' taxation. The bank will reimburse the majority of business miles at the full Fixed Profit Car Scheme rate to help employees repay the loan, and will add a cash top-up, after taking into account the saving the employee makes in no longer having to pay company car tax.
CAPS maintains Barclays' dual badge deal with Rover and Nissan, both of whom agreed to support the programme when their supply contracts were renegotiated earlier in the year. Drivers will be covered by centrally negotiated insurance arrangements and fleet management issues will continue to be undertaken by Barclays' subsidiary Dial Contracts.