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Company cars replaced
with novated leasing

And no pushback from employees

No pushback as novated leasing replaces company cars

This medical multinational had a fleet of 53 company leased cars that were managed by a well-known fleet manager. The cars were purely passenger vehicles, in other words, they were not fitted out with any specific options required for their drivers to conduct business on behalf of the company. All customer facing employees were provided with either a Commodore, a Falcon or an Aurion, as part of their remuneration package.

The challenges

The business had been under increasing pressure to implement a more contemporary approach to vehicle policy and overall remuneration that would deliver greater value to employees and the business. Critical to this would be the phasing out of company cars and the implementation of car allowances with the option of novated leasing. The following challenges has to be resolved:

Vehicle benefit inequality
Lack of flexibility and choice in remuneration
High cost & liability for business

The solution

The HR Manager went to market to find a provider that could address these issues, and provide ongoing support to all departments of the business involved – including HR, finance payroll and tax. Autopia delivered on all fronts.

Equality through car allowances
Personal vehicle choice
Lower cost and liability

Change management

Crucial to the success of the benefit, was the way in which the new vehicle policy decisions were implemented. Change can be difficult for some, especially employees who have become accustomed to the long entrenched benefit of a company car.

Targeted communication
Highly personalised, one-on-one consultation
Easy process

The result

No pushback from employees.
Autopia launched the novated lease benefit to all 53 employees with company cars, as well as another 50 who already had car allowances. As a result of our approach, the expected ‘pushback’ from employees did not materialise. Our client was delighted.

Employees taking the option of salary packaging their cars.
68% of the employees whose company car leases expired  salary packaged a car with Autopia, and our client reduced its company car fleet by 40 vehicles, almost immediately.

Positive feedback resulted in the benefit being opened up to more employees.
Due to our client’s satisfaction with Autopia’s administrative processes and based on the positive feedback from employees, they opened the novated lease benefit up to an additional 250 employees that had historically not been entitled to a company car or car allowance.

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