Page 4 - Fleet

Vehicle Replacement at end of lease
The Fleet Department will notify colleagues of any car lease due to end, approximately four to six months
prior to the lease expiration date. The company is under no obligation to replace a vehicle with a brand
new car and reserves the right to reallocate a current pool vehicle until the end of its lease.

3. Car Choice

The choice or allocation of a company car can be a challenging, and sometimes emotive issue. HSS
recognises the need to offer an attractive car proposition but has to offset this against financial,
environmental and other practical considerations.

The below table sets the available budget for each grade, using a whole cost calculation. This calculation is
a combination of lease, maintenance and national insurance costs.

Grade Budget Choice Approved
Manufacturers
A £460 Restricted List of Cars within the Grade A budget
B £550 Restricted List of Cars within the Grade B budget BMW, Vauxhall, Seat,
KIA, Hyundai, SKODA,
C £650 Any 4 door cars from an approved manufacturer within the grade budget
Ford, Mercedes, Volvo,
D £800 Any 4 door cars from an approved manufacturer within the grade budget Audi, Tesla, Jaguar, Land
E £850 Any 4 door cars from an approved manufacturer within the grade budget Rover, VW.

Environmental Considerations
Over the past decade, the traditional company car has been a hatchback/saloon or estate car with a diesel
engine (known as RDE1 Diesel). This was based on a combination of fuel efficiency and the preferred
environmental option. However, recent research has proved that RDE1 diesels emit high levels of NoX
(Nitrogen Oxide) that are very harmful to human health.

As a result, vehicle engines and the shape of company vehicles are developing rapidly to lessen their
environmental impact. In response, therefore, the ranges of engines that will be offered are:
• RDE2 Diesel (less NoX emissions)
• Petrol/Electric Hybrid
• Efficient Petrol engines
• Alternative fuels (electric, nitrogen)

No colleagues are permitted to order a car that has a BIK% of more than 30% in the first year of the car
lease.

Electric Cars
The supply of electric cars is developing quickly but is still in its infancy. HSS is committed to providing
colleagues with the most environmentally friendly transport but needs to ensure it is done in line with
business needs. Any supply of electric cars to colleagues will be at the discretion of the Fleet department
and fully researched on a case-by-case basis.

Charging of Electric Cars
Any colleague ordering a car, with a plug in electric motor, is expected to charge the batteries on a regular
basis. The frequency depends on the colleague’s mileage and the main measurement will be fuel economy
achieved by the vehicle. Any colleague who is found not be regularly charging their company car may be
transferred into a car not requiring charging, which may result in the loss of any BIK benefit.

Company Car Tax
The taxation of company cars is currently based on the environmental impact of the car. Calculations for
the tax payable rely on a combination of
• the car’s value when purchased (P11D)
• its CO2 Emissions
• its Fuel Type (RDE1 diesels are automatically charged 4% additional tax)

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