Driver Funding Driver Funding
For the majority of the 4 million own-car users in the grey fleet, the funding arrangements are simply part of their ownership obligations for having and running the car. Some might be bought outright out of savings, or a specific loan, or hire purchase. Generally these will not be of specific interest to the employer.
But the increasingly sophisticated group of employees who have given up their company cars in favour of some form of structured plan may have some form of support from their employers. For example, a Personal Contract Plan (PCP) scheme might be arranged by the employer to give the employee all the benefits of a company car, but funded by the individual using a conditional sale agreement (the retail version of hire purchase) with an in-built residual value usually at the supplier's risk.
An Employee Car Ownership Scheme (ECOS) takes this principle and tailors it much more precisely to specific circumstances. Because there are very complex interactions between the funding and tax allowances this is something that needs to be explored with experts: there isn't an off-the-shelf form of ECOS.