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ACTIVA Contracts has launched new personal contract hire (PCH) product for existing customers to provide to employees not eligible for a company car or have opted out of the benefit.

Latest data from the British Vehicle Rental and Leasing Association, of which Activa Contracts is a member, reveals a 24% surge in PCH demand between Q4 2017 and the same period in 2018.

Ian Hill, managing director of Activa Contracts, a division of Arnold Clark Finance, said with the launch of the new scheme that it was important to constantly seek new customers and routes to market.

Models from all major manufacturers can be selected via the web-based scheme and drivers can select contract period, contract mileage and service, maintenance and repair (SMR) levels to be included to suit their personal requirements.

The scheme is aimed at the employees of Activa Contracts’ corporate fleet customers and Hill said that experience was showing clear trends in terms of what employees were looking for when making enquiries.

“Employees that have decided to opt out of a company car scheme are more inclined to take their PCH car on a like-for-like service basis; typically requiring a full maintenance solution including tyres.

“They are maybe opting out of a company car scheme for lifestyle reasons, employer constraints governing vehicle choice or rising benefit-in-kind tax, but they seek the hassle-free in-life comfort associated with a company-provided vehicle.

“However, employees that have not benefited from a company car by virtue of their job are usually seeking out their car of choice at the lowest possible monthly rental.

“Very often this means that they opt for a PCH solution that excludes maintenance services in the belief that they can maintain the cars at a lower cost themselves.

“Whilst this may not be the case, we felt that it was important to offer employees an option that enabled them to self-manage SMR costs.”

The PCH is a personal agreement between Activa Contracts and an employee that requires no involvement from an employer other than making the employees aware of the scheme.

Therefore, in the event of an individual leaving their employer there is no impact on the terms of the car agreement, which remains in place between the employee and Activa Contracts.




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