Scheme Policies

This section outlines some of the key policies of your scheme. Your employer may have their own policy in addition to this and you should contact your Scheme Co-ordinator if you have any queries.


HR

Eligible Employees

Eligible employees are defined as those who are employed by a dealership or a company approved by the manufacturer and are on the payroll for the purpose of their overall remuneration package. New employees will ordinarily be required to successfully complete their statutory probation period before being invited to participate in the scheme. Participation is at the discretion of your employer.

You must hold a valid current UK driving licence at the time of ordering and provide a copy to your Scheme Co-ordinator. The address on your licence must match the records held by your employer. Individuals who are currently filed as bankrupt or for whom bankruptcy proceedings have already commenced, as well as those who are legally prevented from accepting new credit, are subject to the conditions of an IVA or other debt management solution are excluded from the scheme.

Maternity/Paternity and Long-Term Illness

If on maternity/paternity leave or out of work due to a long-term illness, you will be given the option to terminate your agreement by exercising your Buyback Option and returning the vehicle to your employer.

If you wish to retain your vehicle and can afford to continue to make your monthly repayments, your employer may make alternative arrangements in order to collect them. This is at their sole discretion.

Vehicle

Optional extras

The Choice List will detail options that are already fitted to available cars and there will usually be a variety of specifications available.

Fitting of accessories

Dealer fitted or after-market accessories (e.g. tow bars) may be fitted to your scheme vehicle at your expense, but these must be removed prior to return. Any resultant rectification work should be completed so that the vehicle's appearance is not affected.

Return vehicle condition

At the time of order, you will be supplied with a copy of the Acceptable Condition Guidelines. It is imperative that all vehicles are returned to the necessary site in a condition commensurate with this document in order to avoid end-of-contract charges.

A Fair Wear & Tear Guide can be found under the ‘Your Vehicle’ heading and some of the most commonly asked questions have been answered in the Faqs in the Help Centre.

Financial

Initial Deposit

The standard scheme proposition features no requirement for a deposit.

Maximum Repayments

The selected vehicle should normally have a repayment of less than 25% of gross (i.e. before tax) monthly salary. In the case of personnel who earn commission, earnings will be taken as inclusive of these amounts if supported by the previous year's P60 (Statement of Earnings). This is a guideline and your employer may exercise judgement.

Worked example:

  • Annual Salary = £18,000
  • Monthly Salary = £1,500
  • Maximum Repayment (25%) = £375

Payment Collection

You will be asked to sign a Payroll Instruction Form (PIF), which enables vehicle-related costs to be collected directly from your net pay.

Excess Mileage

The Guaranteed Residual Value takes into account the expected mileage of the vehicle at the end of the agreement. Vehicles that are returned having travelled in excess of the contract mileage will be subject to a charge in order that the Guaranteed Residual Value can be adjusted. The pence per mile rate will be clearly stipulated in your Credit Sale Agreement and pro-rated mileage will be calculated in the event of early termination.

If you over travel by under 500 miles we shall normally waive our right to charge excess mileage. If you over travel by more than 500 miles we shall charge excess mileage for all miles over the contract mileage stipulated in your Credit Sale Agreement.

Should you retain your vehicle, no charges for excess mileage will apply.

Early Termination

Participation in this scheme is conditional on your employment at a dealership or company approved by the manufacturer and the agreement will be terminated should you cease to be employed by them.

You have two options:

  • Exercise your Buyback Option and ask CBCS to buy the vehicle back from you, the car will be returned to your employer/the supplying dealership.

    Settle your loan agreement in full and retain your car


You will be liable to pay Early Settlement Interest and although the charge will be specific to your agreement, it is not expected that the interest charge will exceed the equivalent value of one monthly repayment. Other charges relating to mileage and/or vehicle condition may be charged to you prior to leaving your employment.

Fines Administration

As Car Benefit Car Schemes (CBCS) Limited are the registered keeper of the vehicle, all potential fines and Fixed Penalty Notices will be sent to CBCS. Details of the person named on the Credit Sale Agreement are then passed onto the relevant authorities and it is your responsibility to resolve the issue and/or pay the fine within the stated time period. In the event that the relevant authorities require Car Benefit Car Schemes Limited to pay the fine or charge, we will do so. In other cases, where the issue is not resolved, or the fine is time sensitive (e.g. London Congestion Charge or parking fines), CBCS may also make payment. Where CBCS pays for a fine or charge, the cost will be recovered via your employer and will be deducted from your net pay in accordance with the Payroll Instruction Form.

Motor Insurance

Insurance Cover

Insurance cover is provided via Kia Motors UK, more information can be found on the Insurance Guide page.