Rising PCH demand prompts new Activa Contracts affinity car scheme
Activa Contracts has launched an affinity car scheme to meet rising demand for personal contract hire.
Aimed at existing customers looking for a solution for employees who are not eligible for a company car or have opted out of the benefit, the scheme launches at a time of huge growth in the PCH market – 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, said that experience was showing clear trends in terms of what employees were looking for when making enquiries on the new web-based scheme.
He explained: “Employees who 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 scheme offers models from all major manufacturers with drivers able to select the contract period, contract mileage and service, maintenance and repair (SMR) levels online to suit their personal requirements, backed up by a dedicated customer support team.
Activa Contracts also works with its customers to ensure that details of the scheme are well communicated to employees, including the provision of roadshows and workshops to get the message across.
However, as the PCH is a personal agreement between Activa Contracts and an employee, the employer does not need to do anything other than make employees aware of the scheme. And 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.