New subscription service aims to disrupt company car market
A new car subscription service for fleets has launched in the UK to provide all-inclusive business motoring and aimed at challenging traditional fleet leasing.
Developed by leasing broker Green Bison Group and offered alongside salary sacrifice for ultra-low emission vehicles, the Caasta.com solution is aimed at both small and large fleets, enabling them to avoid long-term contracts and big up-front payments for their company cars; both key considerations as sector exits the coronavirus crisis.
The subscription service provides access to vehicles on a 12-month contract with a single monthly fee covering fully comprehensive insurance where required, road tax, manufacturer’s recommended servicing, maintenance and repairs, UK breakdown (including at home) and accident cover, glass repair and replacement tyres (subject to fair wear and tear). All vehicles are guaranteed not to be more than 12 months old or 12,000 miles and can be handed after the first three months with 14 days’ notice.
The single monthly fee will also help businesses manage cash-flow and their total fleet costs; Caasta is also offering the option for firms to outsource their existing fleet under a ‘sale and lease back’ arrangement, which sees Caasta take on existing financing and fleet management.
Caasta chief executive Mike Minahan said: “We want to help businesses to manage their fleet and business vehicle costs with a trouble-free solution with fully insured and maintained quality vehicles wrapped up in a single monthly payment and the confidence that their maximum commitment is just 12 months.
Minahan added: “The Caasta model has been developed to meet the needs of today’s businesses and today’s drivers. We have already signed up a number of businesses, large and small, who are keen to experience a new flexible approach to managing their business fleets without locking themselves into a typical four-year contract. So they can keep their options open while meeting their immediate needs for employees to be on the road, in a fully insured and maintained vehicle while helping them to manage cash-flow with a single fixed monthly fee per vehicle.
Fleets can also benefit from a salary sacrifice solution to enable employees to benefit from tax incentives for ULEVs – with the option to switch to a conventional petrol or diesel vehicle at 12 months if it does not suit their needs.
As with the subscription service, this is available to small, medium and large enterprises and there is no minimum employee requirement.
Minahan continued: “Our new salary sacrifice service gives motorists access to the benefit in kind and tax savings for choosing a ULEV which would not be accessible to them unless it was an option via their current employer and we also take on the administration and liability on behalf of their employer.”