Alphabet targets corporates with new personal contract hire solutions
Alphabet has expanded into personal contract hire (PCH) solutions, supported by a new platform for corporate customers.
Dubbed Alphabet Motion, the platform has been designed to provide a user-friendly way to access the firm’s new PCH services – as well as its Credit Sale Agreement (CSA) solutions – as Alphabet says it’s seen a shift in demand for personal leasing over the past year.
This demand is likely the result of the increase in Benefit-in-Kind (BiK) tax rates for higher-emission vehicles, which has seen some corporate customers move away from company car leasing to cash alternatives. Recently published HMRC Benefit-in Kind data for 2018/19 – the latest year for which data is available – indicates that the number of people taking a company car that year fell by some 30,000 (or 3.3%) to 870,000 employees from 2017/18, as part of an ongoing trend of decline.
Alphabet said it spotted the demand for PCH and a gap in the marketplace at the start of 2020, which has continued to grow throughout lockdown due to a rise in home working and the growing popularity of monthly usage contracts. It initially trialled a PCH service towards the end of the year with a number of customers and is now rolling it out further, supported by the new platform.
The platform provides corporate customers with tax-efficient funding methods that sit outside of BiK, as well as flexible and reliable leasing solutions for vehicles, all of which can be easily accessed through an intuitive platform that is supported by an expert team.
Gavin Davies, general manager, customer account management at Alphabet, said: “Historically, we’ve focused on developing services primarily for businesses, so expanding into personal contract hire is a significant and exciting step for us. We spotted the demand and gap in the marketplace for PCH at the start of 2020, and this has continued to grow throughout lockdown, making now the perfect time to launch Alphabet Motion.
The Alphabet Motion platform has been designed to streamline the vehicle financing process for corporate customers. It gives customers access to a full range of offers on a variety of makes and models, convenient search filters, a dedicated team of experts, and tailored quotes based on personal needs. With clear, upfront pricing and flexible contract terms, Alphabet Motion makes ordering a new vehicle effortless.
Davies added: “A customer has already described the new platform as a ‘breath of fresh air’. Alphabet Motion is another example of how we are continuing to adapt and innovate at Alphabet, to meet our customer demands and to support our ambitious business growth targets.”