Fleet management firm CLM has launched an online scheme called AlphaDrive, which provides clients’ employees with a choice of new vehicles with the benefits of a company car but without the BIK liability.
CLM operations director John Kelly said that the company had steered away from introducing another salary sacrifice car scheme in favour of an alternative solution.
“We have aimed CLM AlphaDrive at companies where a salary sacrifice product may not be appropriate or preferred. This is a very flexible, simple to operate online solution which provides company employees with the opportunity to own a new car at very competitive terms,” he said.
The AlphaDrive scheme works in partnership with leasing company Alphabet, which provides vehicle funding and manage the maintenance of all cars under the scheme.
The programme provides company employees with the choice of a car over two, three or four years with a variety of mileage parameters, and operates an arm’s length credit sale agreement so that there is no benefit-in-kind tax liability for employees or employer.
Users can search by manufacturer or by monthly budget and the online system can instantly provide up to 100 individual quotations at any one time. CLM AlphaDrive has been able to achieve very competitive prices through its bargaining power with vehicle manufacturers and service providers, according to the company.
There is no requirement for any initial deposit and users are free to decide how much salary they wish to spend on purchasing their new car, as well as having the option of selling it back for a pre-determined value at the end of the agreement, subject to the car meeting required return standards, or paying a final instalment and keeping the car.
Kelly said: “CLM AlphaDrive offers employees a brand new car every two, three or four years , with a wide choice at competitive prices, known costs, no Benefit in Kind tax liabilities and the transfer of ownership from day one of the agreement.
“The scheme also allows companies to tackle the duty of care issues they face where they have employees using their own vehicles of indeterminate quality and reliability, as it provides brand new cars which must be serviced in accordance with manufacturer guidelines,” he added.
Eligible employees can take a maximum of two CLM AlphaDrive cars for themselves or a family member, and the standard monthly agreement includes full maintenance, UK and European breakdown assistance and tyre replacement. In addition, road fund licence cost is included for the length of the agreement.
CLM said the first fleet to use the new scheme is a global intelligence provider, and an existing customer, with a 500-strong company car fleet. It continued that 800 of its staff have already opened online accounts to be able to take a new car through the scheme.
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