In addition to providing employees a salary, some companies offer perks like gym membership, tuition reimbursement, and even free lunch.
One U.K.-based company, Your Housing Group, goes a step further: It’s introduced to its 1,500 employees a new salary sacrifice scheme from fleet management and funding company Lex Autolease. The program offers staffers a maintained and managed company car — to all permanent employees, not just at the executive level — for a monthly rental fee that is “sacrificed” from their pretax salary. The fee includes the basics of car ownership, from insurance and breakdown coverage to maintenance.
Vehicles available in the program range from Ford Fiestas and Volkswagen Golfs to BMW 3 series, and up to two additional drivers can be added to the agreement, which adds a further convenience for employees with families.
While we’re sure such an arrangement couldn’t be made with pretax dollars stateside, imagine the opportunities that could open up if auto lenders instilled a similar program with U.S. employers. It could certainly make the car-buying process — and vehicle ownership — less of a hassle, play a viable role in employee retention … and open up a whole new playing field for auto originations.
