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How democratizing your company car policy can be a game-changer for your business

03 Nov 2020
The face of mobility is changing. Today, the world is increasingly looking for safer, more efficient and viable mobility solutions. With millennials and professionals increasingly favoring 'access' over 'ownership' to get their dream car, corporate car lease, is a solution that ticks all the right boxes for corporates and their employees.
Business vehicle leasing has turned out to be quite effective for corporates across the board, be it as a tool-of-the-trade or as a benefit offered to top-level employees.

In conversation with Venkatesh K - Country Head of Sales, ALD India, we try to look at how corporates have much to gain by democratizing car leasing, and reaching out to more employees, rather than just the top management.

  • Mr. Venkatesh, a company car has always been a mark of pride. Do you think it’s time for companies to rethink the company car as a 'benefit', offered to a select few employees?

    Yes, absolutely. Traditionally, a company car is offered as a benefit to a select few employees, to reward and retain talent. But with changing times, there is a need to rethink mobility for employees at large. Companies today should look to 'democratize' their company car policy, to reach out to many more employees and cater to their mobility needs.

    Mobility partners such as ALD, make this possible for corporates and businesses across the board, via safer, more economical and hassle-free car leasing options.
  • But wouldn't reaching out to more employees with car leasing options, mean more admin and overhead costs for the company?

    In reality, not at all. You see, once the business has laid out their car leasing policy with regard to the eligibility, range of cars, safety, corporate image, etc., in consultation with their leasing partner, there is not much to be handled by the company itself. The lease is essentially in the name of the employee, with the company only acting as a facilitator. The leasing partner then effectively takes over the entire vehicle leasing processes.

    In fact, this allows corporates to do away with the hassles and costs of vehicle procurement, maintenance, and losses suffered due to value-depreciation of the vehicle over time.
  • So, the lease contract is essentially tripartite - between the employer, the employee, and the leasing company?

    Yes. ALD Automotive offers a tripartite leasing option - ALD Ugo - which allows employees great flexibility in choosing the car of their choice, based on eligibility as per their company car lease policy. As the employer has partnered with ALD Automotive, we are able to offer favorable deals to employees, with added-benefits and professional services like maintenance, insurance, relief car etc. which can be availed of by the employees.
  • Does a tripartite contact mean better allocation of accountabilities as well?

    True, under ALD Ugo, the vehicle is registered under the name of the employee. This helps in attaching responsibility for any liabilities arising out of car usage to the right person (driver/employee). Other financial responsibilities like monthly payment of lease rentals continue to be the responsibility of the company till the last day of the lease, in the same manner as if the car was registered in their name.
  • So, all in all, what's in it for the company?

    There is a lot to gain for the company. By charting out an effective Employee Car Leasing Policy with your car leasing partner, you can redefine mobility for your company and build a positive corporate image, while opening up a wide range of leasing options for your employees as a reward to retain good talent. All this is achieved without increasing any direct cost for the company in terms of investment to buy these cars, also avoiding any related hassles of administration of such a car policy.
  • But what if the employee is leaving the company? What happens to the lease contract?

    Normally, termination of the lease contract due to employee attrition would mean a lot of hassles for the admin representatives or fleet manager. But with ALD Ugo, we offer an opportunity for employees to continue the lease contract individually or through their next employer, subject to credit check and clearance.

    Not only does this reduce the hassles and termination costs for the company but provides a great deal of flexibility to the employees as well.
  • With so many financing options like bank loans, etc. available for purchasing their own cars, why should employees look to lease a car through their company?

    First things first, leasing is significantly easier on the pocket, with no down payments and affordable monthly lease rentals since you essentially pay for how much you drive, with the monthly lease amount being calculated on the set mileage and tenure choices. As the monthly lease rental is reduced from an employee's pre-tax salary, they save a considerable amount on tax as well. The cost-efficiency, along with the flexibility of choosing their own car with added services managed by ALD like insurance, maintenance, 24x7 roadside assistance, standby car etc. makes ALD Ugo an attractive mobility solution for employees.
  • Why according to you is ALD the perfect leasing partner?

    Ever since we started operations in India, back in 2005, we haven't taken a break. With a fleet of over 14,800 vehicles, catering to more than 1500 corporate customers across 280 locations in India, we have become a leading player in business vehicle leasing and fleet management. Backed by our global network and support infrastructure, we understand mobility needs better than a lot of leasing companies in India. Besides, ALD India is ISO 9001:2015 certified for the Provision of Customer Services during lifecycle management of vehicles contractually leased with ALD. Also, integration of smart technologies such as the My ALD app, ALD Optiflex Matrix, and the digitalization of our day-to-day management, enable the very best user experiences. And at the end of the day, it is customer satisfaction that drives everything we do, here at ALD Automotive. Making us the ideal partner on your journey to hassle-free mobility.

Democratizing mobility could hence be a game-changer for your business. Because charting out the right Employee Car Leasing Policy might seem like a small step. But it's actually a giant leap towards enabling safe and viable mobility options for your employees. At ALD Automotive, we help you make this a reality.

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