It could in future lead to the scheme being widened to thousands of employees who until now have not been entitled to a company car. Company car drivers will be given freedom of vehicle choice without the need to worry about the effect their decision will have under the new carbon dioxide-based company car tax regime. The move will also consolidate the running of the Bradford & Bingley fleet under VELO, instead of several suppliers. The building society operated three different car schemes, one for its estate agency, one for specialist lending and another for the building society itself, but will now consolidate to just one.
Through the scheme, funded by Whitechapel Corporate Services - a subsidiary of First National Vehicle Holdings - drivers effectively own their cars. Drivers then use the money they save from benefit-in-kind tax to fund the monthly payments on their vehicles.
Bradford & Bingley believes some form of company-provided car is a key to recruiting and retaining the right calibre of staff. Through the Whitechapel scheme, it intends to offer a wider choice of vehicle packages to employees, allowing them access to 'better' cars than previously offered in the company car programme. Nearly all the company's 2,100 car users will be signing up to the scheme, which has been enhanced with a preferential rates supply deal with Peugeot and Ford.
Jeff Prince, group head of purchasing at Bradford & Bingley, said: 'This is part of cost benefits being delivered through our supply chain development programme. In today's highly competitive environment, innovative and creative schemes such as this prove you can benefit both the business and its employees, which is good for everyone involved.'