The company claims it already has strong interest in the scheme, branded PCOP (personal car ownership plan), from fleets operating a total of 20,000 company cars. Steve Taylor, managing director of GECFS, said: 'PCOP offers significant savings to the employer, leaving the employee in the same financial situation. Typically, over a three-year period a company with a fleet of 500 cars made up of 40% perk car users and 60% essential car users would save £1.5 million.'
PCOP sees employers pay a monthly allowance to staff, who use the money to fund a car that they technically own, thereby avoiding benefit-in-kind tax. Drivers then take out a loan with GECFS to fund their cars, and make a monthly repayment to cover interest, service and maintenance, road fund licence, breakdown cover, and to secure a guaranteed buy-back figure. GECFS will work with clients to obtain Inland Revenue clearance for each scheme.
The product has been completely web-enabled to accelerate the speed and reduce the fee costs of implementation, overcoming two of the primary criticisms levelled at certain employee car ownership schemes.
Taylor claimed the technical details and online efficiencies of PCOP will deliver savings of 15% beyond those of any other structured car ownership scheme.