Pendragon Contracts has been selected by Hanson UK to provide company cars for up to 750 drivers based on a whole-life cost model. The move will enable Hanson to offer its staff a range of cost-effective and CO₂ efficient vehicles and, at the same time, provide considerable savings to the business.

Over the next three years Hanson is switching from a mix of company cars, cash allowances and mileage payments to a new, consolidated company car scheme for all drivers. To implement the scheme, Pendragon Contracts has developed a bespoke online quoting system using the Deloitte Car Flex System that has been tailored to meet Hanson’s specific requirements. 

Androulla Sofroniou, procurement manager for Hanson UK, says: “The policy change was prompted by a need to provide greater consistency and fairness for all Hanson UK car users as well as improve sustainability and safety standards. It also needed to be attractive to both employees and the company.

“The driver information centre is streamlined and easy for our staff to use, so they can make an informed decision about their vehicle choice. It includes all the Benefit in Kind tax rates and allows them to trade down and neutralise the personal tax liability.”

Three manufacturers have been selected by Hanson to achieve optimum choice through seven brands. They are VW/Audi, which includes Seat and Skoda, BMW and Toyota/Lexus.

Car choices are within job grade bands and limited by CO₂ emissions.

Neal Francis, managing director of Pendragon Contracts, says: “The whole-life cost model demonstrates the total operating elements of running vehicles and therefore enables businesses to select the most efficient cars in the chosen sector, maximising their environmental, tax and financial efficiency. The more popular benchmark of VAT effective rentals can be grossly inaccurate, as it ignores the insurance and fuel elements which typically equate to 50 per cent of a vehicle’s running costs.”