Many firms and other types of organisation make use of car lease deals. Indeed, the popularity of such provisions is rising in the UK and many other countries around the world.One body that has been making the most of car leasing is the Western Trust in Northern Ireland. The health organisation, which employs nearly 12,500 staff members and serves a population of 290,000 people, provides 198 of its employees with lease cars, the Londonderry Sentinel reports.
According to the trust, it saves in the region of £110,000 on travel expenses as a result of its car lease deals. Rather than providing company cars, it has a leased vehicle facility for any of its employees who need to travel in order to fulfil their duties.A spokesperson for the organisation claimed that using its system, a worker who clocked up a private mileage of 8,500 and a business mileage of 6,500 would cost the trust £3,004 per year. In contrast, paying the same employee full travel allowances for their own car would cost £3,620 over a 12-month period.
The representative added: “The annual savings were calculated on taking a random sample of ten cars and extrapolating to give an approximate annual figure.”Meanwhile, the individual went on to state: “Each leased car contract runs for a period of three years. Should an employee leave the trust’s employment before the contract expires, the employee has to pay any early termination penalty to the leasing company.”
The savings made as a result of the car leasing may be particularly welcome at present as a result of the ongoing budget tightening that is taking place across UK public bodies. As a result of cuts in central government funding, organisations such as health trusts are having to find ways to reduce their outgoings and the pressure looks set to remain for some time to come.