Since 1988 we ve supplied over 40,000 vehicles to business fleets of all sizes

Transcription

1 Since 1988 we ve supplied over 40,000 vehicles to business fleets of all sizes

2 Contents

3 Part of the JCT600 Group our roots are strong Total vehicle leasing solutions you can trust JCT600 Vehicle Leasing Solutions A name you know and can trust.with our beginnings in 1988 JCT600 Vehicle Leasing Solutions has long been recognised as a company offering excellent customer care for the total range of vehicle management services, to both the corporate and personal markets. We are based in Bradford, West Yorkshire, and operate independently from the JCT600 Group, one of the UK s largest motor retailers, but benefit from their full support and backing. Our company vision is to be the best, rather than the biggest. Best in terms of our customer service, our commitment to people and just about everything else. We are a family business with strong family values. Our roots guide our decisions and enable us to remain flexible and nimble to change. Continuous investment in our people and our technologies keep us at the forefront of our industry.

4 FUNDING AND FINANCE Funding And Finance Identifying your needs and providing the right solution

5 We obtain competitive finance rates from some of the most respected financial institutions in the UK including Lloyds Blackhorse, Barclays Bank, Close Finance, Macquarie and Clydesdale Bank to provide a range of leasing solutions that meet our clients requirements. Business Contract Hire Contract Hire allows a vehicle to be supplied over a fixed period for a fixed monthly rental (normally including maintenance) to provide a full operational solution. Available to a whole range of businesses, it is a method of funding that provides a fixed, manageable and cost effective solution for vehicle acquisition. Contract Purchase Contract Purchase has many of the benefits of our contract hire service but you also have the opportunity to own your vehicle at the end of its contract. It is the right choice for you if you want your assets to appear on your balance sheet or if your company can t recover VAT. Personal Contract Hire Private individuals can access the same benefits as businesses can from contract hire. We are one of the few personal contract hire providers in the UK. We ll make sure we assist you in matching the right deal to suit your lifestyle and budget. Salary Sacrifice The advent of low CO 2 emission cars has made salary sacrifice options far more financially attractive. Employees benefit from reduced costs whilst it is tax neutral for employers. Our fully compliant and transparent product will enhance your employees range of benefits. Sale and Leaseback Need an injection of capital? Our sale and leaseback service helps you save money in the long term as we buy your fleet from you at the current market value. Then you can sit back and enjoy the undoubted benefits of contract hire as we lease the vehicles back to you. Short Term Hire Our Daily Rental service uses a state of the art system to make booking easy, efficient and cost effective so we can deliver a high quality, competitive rental solution to our customers. Total Leasing Solutions for your business - Contact our team on or visit

6 BUSINESS CONTRACT HIRE Business Contract Hire The provision of a vehicle for an agreed period, usually including maintenance cover, for a fixed monthly rental

7 JCT600 VLS has been supplying Contract Hire to SMEs in the UK since the day it was formed in 1988, and through all the economic ups and downs since, making it one of the most consistent, reliable and experienced companies in the marketplace. You simply choose the vehicles you need (or we can help you decide the best ones for your business), then we buy and manage them for you. All you will have to do is pay a fixed monthly rental for the use of the vehicle. The benefits of contract hire:- Fixed Monthly Payments All costs (including maintenance if required) associated with running a business vehicle are visible to you and are fixed from day one of the contract with the exception of fuel and insurance. We will agree the optimum duration and mileage to meet your requirements and calculate the monthly lease rate accordingly including the expected future re-sale value. This will allow you to budget accurately and forward plan your fleet costs. No Risk A vehicle will start to lose significant amounts of its value as soon as it leaves the showroom. With contract hire all depreciation risk is eliminated. You return the vehicle to us at the end of the contract and any variance on the re-sale value to that set in the contract is at our risk protecting you from market fluctuations. VAT We buy and finance contract hire cars VAT free. 50% of the VAT on the capital element of the lease rental and 100% on the service element of the monthly lease rental can be reclaimed by you which is a substantial financial advantage over an outright purchase option using your own funds. Release of Capital Using contract hire involves minimal capital outlay (usually just 3 months rental as a deposit) compared to using your own funds and tying them up in a rapidly depreciating asset. Instead you can re-invest the cash in your core business activities. Operational Benefits With JCT600 VLS s expert fleet team taking care of sourcing, delivering, maintenance and the day-to-day routine administration of your vehicles you can fully concentrate on your business. Off Balance Sheet Funding Current Accounting regulations allow operating leases (which includes Contract Hire) to be reported off-balance sheet. This can improve some key financial measurements and release other forms of lending to support core business activities. Rental Leasing Allowances Car lease rentals are usually an allowable expense for businesses which can be deducted against its corporation or income tax charge. From 1 April 2009 a percentage restriction applies to the finance element of the lease where CO 2 emissions exceed a g/km threshold. In addition the Government has decided to cut corporation tax to 21% in 2014/15and then to 20% in 2015/16. From the 1 April, 2013 leased cars have been treated in one of two ways: Cars with emissions up to and including 130g/km face no lease rental restriction so the cost of the lease is fully deductible against taxable profits. Cars with emissions of 131g/km or more face a 15% restriction so companies can only deduct 85% of any rental payments. The table below outlines the impact of these two scenarios Tax Year 2014/ /16 Co 2 g/km Corporation Tax 21% 21% 20% 20% Monthly Rental Annual Rental 4,800 4,800 4,800 4,800 Restriction 15% 0% 15% 0% Annual Deduction 4,080 4,800 4,080 4,800 Tax Relief 857 1, Total Leasing Solutions for your business - Contact our team on or visit

8 CONTRACT PURCHASE Contract Purchase Contract Purchase has many of the same benefits as contract hire but with the opportunity to buy your vehicle at the end of its contract

9 Whilst only a small proportion of the UK market uses Contract Purchase it is a funding method available to those companies who prefer to have the option the buy the vehicles. It may also be a more attractive option for companies who cannot fully recover VAT. As with Contract Hire, Contract Purchase delivers the benefits of reduced administration and fixed rental payments as well as releasing capital for investment elsewhere. The benefits of Contract Purchase:- Fixed Monthly Payments All the costs associated with running a business vehicle are visible to you and are fixed from day one of the contract. We will agree the optimum duration and mileage to meet your requirements and calculate the monthly lease rate accordingly including the expected future buy-back value. Capital, Interest payments and even maintenance costs (if selected) will be fixed throughout the period of the agreement. This allows you to accurately budget and forward plan your fleet costs. No Risk A vehicle will start to lose significant amounts of its value as soon as it leaves the showroom. With contract purchase the depreciation risk is minimised with a guaranteed Buy Back from JCT600 VLS. At the end of the contract you can a pay a predetermined balloon payment to complete your purchase of the vehicle or you can choose just to return the vehicle to JCT600 VLS. VAT As this is a purchase arrangement the finance element of the rental payments is not subject to VAT which will prove beneficial if you are unable to fully recover VAT. If you choose to include a maintenance and services package in the monthly rental this will attract VAT in the normal way. Release of Capital Using Contract Purchase involves minimal capital outlay (usually just 3 months payment as a deposit) compared to using your own funds and tying it up in a rapidly depreciating asset. Instead you can re-invest the cash in your core business activities. Balance Sheet Treatment As this is a purchase agreement the asset is shown on the balance sheet enabling capital allowances to be claimed. The rate of allowance is regularly reviewed by the government and, in line with its policy on reducing carbon gases, is linked to the CO 2 emissions of the car. Currently it is as follows:- Cars up to 75g/km Cars above 75g/km to 130g/km Cars above 130g/km 100% first year allowance 18% allowance 8% allowance The Government has announced its intention to review 130g/km main rate threshold (18%) and the 100% first year allowance availability in the budget of Operational Benefits Contract Purchase is identical to Contract Hire from an operational point of view. The key difference of course is that Contract Purchase gives you the option of purchasing the vehicle at the end of the contract. With JCT600 VLS s expert fleet team taking care of sourcing, delivery, maintenance and the general day-to-day routine administration of your vehicles you can fully concentrate on your business. Flexible Services Defining the right services for your specific fleet needs is what sets JCT600 VLS apart in the vehicle leasing market. These could include maintenance (fixed or pay on use), roadside assistance, fuel management, accident management, daily rental vehicles, driver management, telematics and fleet consultancy. Our Fleet Controller web enabled management tool is also included for real time data on your car fleet whilst our Electronic Driver Services (EDS) system can support your drivers from journey logging for expenses to general car policy information. Total Leasing Solutions for your business - Contact our team on or visit

10 PERSONAL CONTRACT HIRE Personal Contract Hire Private individuals can access the same benefits as businesses do from contract hire No Risk Fixed Monthly Payments Flexibility Access to New Cars

11 Personal Contract Hire (PCH) which is also known as Personal Leasing operates in exactly the same way as traditional contract hire for companies but is available to private individuals. It is cost effective and easy to manage as well as the most efficient way to offset the high cost of depreciation on new cars. The benefits of Personal Contract hire:- Fixed Monthly Payments All the costs associated with running a vehicle are visible to you and are fixed from day one of the contract. We will agree the optimum duration and mileage to meet your requirements and calculate the monthly lease rate accordingly including the expected future re-sale value. Capital, Interest payments and even maintenance costs (if selected) will be fixed throughout the period of the lease agreement. This allows you to accurately budget and forward plan your motoring costs. No Risk A vehicle will start to lose significant amounts of its value as soon as it leaves the showroom. With Personal Contract Hire all depreciation risk is eliminated. You return the vehicle to us at the end of the contract and any variance on the re-sale value to that set in the contract is our risk protecting you from market fluctuations. Access to New Cars As using PCH involves minimal capital outlay (usually just 3 months rental as a deposit) and is based on the depreciated value of the vehicle the monthly rentals are very competitive against, for example, a personal loan which would be based on the full repayment of the original cost of the car. This also enables you to have access to cars with values usually in excess of those you could normally afford. Flexible PCH contracts can be tailored to suit your needs. At the outset we will agree the length of the contract with you and the mileage allowance you think you will need over that period. If you opt to include a maintenance package all the costs for routine servicing and tyre replacement are included in the monthly rental offering a complete fixed motoring option and protection from unforeseen cost increases. End of the Contract JCT600 VLS will notify you at least 3 months in advance that your contract is due to expire and in most cases will offer you the opportunity to consider a new contract for a new car. We will then organise collection of the vehicle and (if you are taking a new vehicle from us) deliver the new vehicle in a key for key exchange. As long as the returned vehicle has not travelled in excess of the agreed mileage allowance and is in a condition in adherence to the British Vehicle Rental and Leasing Association (BVRLA) fair wear and tear guidelines then that is the end of the agreement for that vehicle. Simple! If you have travelled more miles it is not a problem. We would invoice you for the excess miles on a pence per mile basis that was agreed at the outset of the agreement. Any damage in excess of the BVRLA guidelines would also be charged. Total Leasing Solutions for your business - Contact our team on or visit

12 SALARY SACRIFICE Salary Sacrifice The development of low CO 2 emission engines has made salary sacrifice for cars far more financially appealing save on income tax and national insurance

13 A properly researched and managed Salary Sacrifice car scheme will allow your employees to benefit from a new car, with all expenses such as maintenance and tyres included (but not fuel), over a fixed period of time of usually two to four years. The full costs of the scheme, including administration, National Insurance and any other costs, are fully paid for by the employee through a reduction in their gross salary. The employee will save tax and National Insurance on the salary sacrificed and can benefit from your companies purchasing leverage with suppliers but they are liable for benefit in kind (BIK) tax on the car they choose. The advent of significantly lower Co 2 emission cars is one of the reasons Salary Sacrifice schemes are now more popular and generally mean the tax and NI savings outweigh any BIK taxation. How does it work? As an employer you are able to fully recover the costs of funding and operating the car from your employee, you can offer a very attractive employee benefit and you can save Class 1A National Insurance Contributions on the salary sacrificed. There are virtually no costs to the employer in introducing a salary sacrifice scheme as long as there are controls around any early termination of contracts (if an employee leaves for example), excess mileage at the end of the agreement or damage costs. It would be managed in exactly the same way as a traditional company car scheme. In addition it can significantly reduce the grey fleet risk. Above all it is a way of offering an enhanced employee benefits package which will help to attract and retain high calibre employees. It is highly advisable that an employer should seek professional tax advice and confirmation from the HRMC that the proposed scheme meets regulatory requirements before implementing any proposals. The success of a car Salary Sacrifice scheme can be judged on the level of adoption from the employees. Generally any scheme that has a 10 to 15% take up would be seen a significant achievement although realistically the average in the UK is around 3%. The key to success is definitely effective communication and education. It is critical employees understand the benefits and choices available from the launch of any scheme and that this communication is maintained with regular updates. Your selection of a partner for your Salary Sacrifice scheme should take into account their ability to effectively and sustainably communicate the plans benefits and desirability as well as the simple and efficient access to the tools they will need to calculate their options. This is where JCT600 VLS can help you. Besides our technical ability to deliver and administer a fully compliant car Salary Sacrifice system, we will assist you in designing and implementing a communication and education strategy that will deliver a high quality experience whilst ensuring the process is simple and efficient for both you and your employees. Example:- Typical Salary Sacrifice Car VW Golf 1.6 TDI S 5dr P11d Value 18,915 20% Tax 40% Tax 45% Tax payer payer payer Leasing Cost deducted from Gross Salary Less Taxed Saved Less NI Saved (12%/2%/2%) Net Salary Reduction Taxable Benefit (BIK) 14% banding Net Cost to Employee Monthly Saving to Employee Total Leasing Solutions for your business - Contact our team on or visit

14 SALE AND LEASEBACK Sale and Leaseback Need to invest in your business? Our sale and leaseback service helps to release the capital tied up in your fleet to be re-invested in your core business

15 If you own your fleet you will know that you have a lot of capital locked into quickly depreciating assets. How would you like to release the value sealed in those assets as a cash injection back into your business? Through a Sale & Leaseback with JCT600 VLS you can do just that. How does it work? Simple. We would evaluate the fair current market value and written down value of your fleet based on the age, mileage and condition of the vehicles. You can decide if you want us to buy the fleet for market or written down value. We would then agree with you, vehicle by vehicle, the lease term for the remaining life of the asset (the age and mileage we expect the car to reach before it is replaced) and which services you want including in the contract (maintenance, tyres, accident management etc.). We would also set a residual value on each of the vehicles. Together we would decide on the go live date where we would transfer the agreed sale price for the fleet to you and ownership of the vehicles would transfer to us. From that point on you would pay a fixed monthly rental for the use of the vehicles and the contracts would operate as a standard contract hire agreement. Benefits Release capital back into your business improving liquidity Fixed monthly rentals allowing ease of budgeting Removal of re-sale risk Improved Balance Sheet ratios as off balance sheet funding Reduce maintenance risk Reduced Fleet Administration Can include range of additional fleet services Fleet Controller Web enabled reporting as standard JCT600 VLS Fleet Consultancy provided In these days where funding is difficult to come by and where you do not want to tie up your alternative credit lines or overdrafts the Sale & Leaseback option can provide those much needed funds to help your business grow. Total Leasing Solutions for your business - Contact our team on or visit

16 ANCILLARY SERVICES Ancillary Services Helping you better manage your business fleet M T W T F S S

17 Fuel Card Management Fuel is one of the most significant and variable fleet costs accounting for 25% of the total expense of running a company car. Control of this area is vital to any fleet operation irrespective of its size. Fuel Cards are an important tool for companies wanting to have greater visibility and influence over fuel spend as well as a reduced internal expense administrative burden. JCT600 VLS can offer a variety of solutions providing detailed fuel usage information and fuel payment options. This will allow you to develop more strategic planning for your fleet whilst providing your drivers with an alternative fuel payment method and preventing out of pocket expenses. Short Term Hire Whether it is for a new starter, breakdown, accident or just a business need for a short term hire vehicle JCT600VLS has the answer. Using the innovative Epyx 1Link system our in house Car Rental team we can offer you a quick and cost effective answer including:- Competitive Prices Comprehensive Network including airports, stations and ports. Online booking facility Reservation confirmation On time deliveries & collections to meet your requests One way hire option Inclusive of Roadside Assistance Management reporting to control costs. Accident Management According to official UK statistics there were more than 138,000 reported road traffic accidents in This does not include the tens of thousands of unreported accidents resulting in car damage and repair costs. Running a car fleet means you will need a strategy to deal with accidents. Moreover they often mean companies incur substantial unplanned costs in insurance premiums, repair bills and loss in production time. Accident Management is a way of managing the costs of accidents, reducing the impact of having a vehicle off the road and managing repair bills. We are proud to work in partnership with Fleet Motor Group (FMG), one of the most respected Accident Management providers in the UK, and its unique CrashMaster service. From the time of any accident being reported to them by one of your drivers they will manage the whole process from relief vehicle provision or driver mobility, claims management, repair and return to the car to the driver, uninsured loss recovery to comprehensive cost and incident reporting. You can outsource this whole difficult area to a professional company who will control your accident costs, support the driver, minimise downtime and reduce your in house administration burden. Total Leasing Solutions for your business - Contact our team on or visit

18 FLEET MANAGEMENT Fleet Management Providing you with a range of day-to-day solutions to minimise your operational cost

19 If you decide it is beneficial for your company to actually buy and own its vehicles, or you use other sources of funding from the bank or possibly a finance lease or even a non-maintenance contract-hire option, you will still need to manage the day to day operational demands of running your company vehicle fleet. JCT600 VLS can provide you with a full outsourced Fleet Management service. Your vehicles are administered in exactly the same way as our contract hire fleet ensuring you benefit from our industry knowledge and contacts, vehicle expertise, fleet experience and buying power. The services included can cover:- Vehicle Procurement We will order the vehicles on your behalf and manage the whole process with the supplying dealer including delivery to the driver and collection of the old vehicle for resale. Maintenance Management We can offer either a fixed price maintenance package, where you will pay a set amount per month based on the predicted duration and mileage of the vehicle or a pay on use option where we would invoice you on a monthly basis for the actual maintenance costs incurred. This can include tyres where we are also able to offer a fixed price package. We will also pursue any warranty claims on your behalf. Vehicle Disposal JCT600 VLS can sell vehicles on your behalf using our expertise and market knowledge to obtain the optimum resale values for you. We would sell your vehicles through the same channels as we do our own contract hire vehicles giving you the comfort of knowing we are seeking the maximum return. You would also benefit from our low administration costs negotiated with the auction houses and other disposal outlets. Additional Services Roadside Assistance, Relief Vehicle, Road Fund Licence management, MOT & Service reminders, traffic fine management, Accident Management, Fuel Management, Fleet Consultancy, Telematics and our Fleet Controller web based management reporting tool can all be added to the basic package to deliver a complete outsourced Fleet Management service. Allowing you to focus on your core business activities JCT600 VLS Fleet Management will support your drivers, reduce your costs and in house administration overheads whilst providing a high quality and comprehensive fleet facility to your company. Total Leasing Solutions for your business - Contact our team on or visit

20 GREY FLEET MANAGEMENT Grey Fleet Management YOU have a corporate responsibility to exercise a duty of care to ensure the legal compliance of your drivers who use their own vehicles for business

21 It is estimated that nearly 50% of all business miles travelled in the UK are the result of employee owned cars used for business purposes. If you have drivers using their own cars for business you need to consider:- Is it the right vehicle to meet the job requirement? Co 2 and environment Corporate Image Safety How do you pay the employee for use of the car? Government Approved Mileage Allowance (AMAP) can be expensive Business Journeys need to be recorded and audited All need to be regularly audited to comply with the Corporate Manslaughter & Corporate Homicide Act of This is where our Electronic Driver Services portal (EDS) can help you. Supported by:- live web enabled reporting structure driver supplied historic information supporting document images of Insurance, maintenance/repair invoices driver s licence information (including regular DVLA checks) All of which are held on the EDS system enabling you to instantly access and verify the vehicles and drivers are roadworthy and legal or identify drivers where further investigation is required. Protecting your company with a complete solution for a very grey area Duty of Care The employer is responsible for the duty of care for any vehicle used for business purposes and needs to be able to verify:- Driver Ability Health Insurance MOT Road Tax Driving Licence Maintenance Tyres Total Leasing Solutions for your business - Contact our team on or visit

22 Additional Consultancy Services Additional Consultancy Services Expertise and solutions to improve the efficiency of your fleet

23 Since our inception we have been developing and refining the fleet services to offer our customers a complete vehicle fleet solution. Our experienced and highly trained consultants will review your current fleet operations and deliver a detailed and comprehensive report and analyses of the opportunities to increase your fleet s efficiency. Fleet Policy Diesel or petrol? One car brand or free choice? Benchmark cars or monthly allowance? What are our competitors offering their drivers? These are just a few of the questions you have to wrestle with and ones that can have a significant impact on your business success! JCT600 VLS is here to help. With over 26 years experience and our extensive knowledge of the UK company car market we can help you formulate a policy to meet the needs of your business and maintain that delicate balance between costs and employee satisfaction. Fleet Reporting Our Fleet Controller online fleet management portal is one of the most sophisticated available in the UK today giving you instant access to live fleet data. Anything from vehicles on order, renewal forecasting, MOT and Service due reporting, Co 2 and fleet inventory data to driver information and full invoicing information is available via web access. In addition we can deliver bespoke reports in a variety of formats as required. As the name implies Fleet Controller allows you to manage your fleet pro-actively to minimise costs and maximise usage. Telematics An increasingly useful fleet option to consider from simple accurate mileage data collection to a complete navigation, route planning and safety tool. Telematics systems can measure speed, harsh acceleration or deceleration, seat belt usage, location and a multitude of other data all in real time depending on your business needs. JCT600VLS has formed a partnership with a market-leading, innovative telematics company to offer our customers a viable telematics option. Driver Risk Profiling Often a forgotten area of managing a modern business fleet but one which can have the highest risk. Our driver profile analyses draws from a number of data points including driver age, location, accident history evaluation, business miles covered, road traffic violations history and regular driving licence validation. You can configure your own driver risk definitions and red flags to monitor your drivers and take preventive measures such as driving training. Whole Life Cost Analysis Depreciation, fuel, maintenance, insurance, interest, VAT, fees, accident costs, end of contract costs, tax, roadside assistance, short term rental and other expenditure besides are all areas that add together to form the true cost of operating a company vehicle fleet. Using the Whole Life Cost (the projected full cost of using a vehicle for the given duration and mileage) allows you to gain a meaningful comparison of the relative costs of different manufacturers and models, fuel types, and leasing companies. JCT600 VLS s consultants can help you pinpoint the most complete cost effective solution for your business. Green Fleet Options All UK quoted companies are required to report on their greenhouse gas emissions. The Government strongly encourages all other companies to do the same. Company cars can be a key contributor to a company s carbon footprint. High CO 2 emission cars use significantly more fuel and attract higher personal and corporate taxation. Going green will reduce your costs! From car policy advice on which cars are the most efficient, through management reporting so you can continuously monitor your fleet, to driver education & training on a more economical (and as a consequence a safer) way to drive, JCT 600 VLS can help you meet your environmental ambitions. Total Leasing Solutions for your business - Contact our team on or visit

24 Business Contract Hire Fleet Policy Consultancy Short Term Hire Salary Sacrifice Sale and Leaseback Fleet Management Grey Fleet Management Driver Risk Profiling Accident Management Driver Licence Checking Fuel Card Management Telematics Green Fleet Personal Contract Hire Total vehicle leasing solutions for your business - Contact our team on or visit JCT600 Vehicle Leasing Solutions Ltd Tordoff House Apperley Bridge West Yorkshire BD10 0PQ T: F: E: sales@jct600.co.uk