Staff car

Staff car policy

Generally

Via Regent’s staff car solution, employees get the opportunity to lease brand new cars at a favorable price. Here, the rules that apply to staff cars are clarified. The size of the discount for the employee depends on many factors, the largest contributing factor being the benefit value, which varies between car models. The employee’s salary also plays a role. Therefore, it is difficult to give a percentage amount exactly how big the discount will be. To provide a guideline value when it comes to accessories such as washer fluid, tires, tire storage, car wash and the like, the discount is ~ 70%. For the car itself, the discount is ~ 20%.

This Excel document can make it easier to calculate the total cost for you as an employee.
ALD Personalbil.xlsx

Routine for ordering

Here’s how to order a staff car:

1. Contact ALD Automotive for instructions on how to place the order.
2. Ensure the approval of the immediate manager to order a car by having both parties digitally sign the Personal Car Agreement document available for each subsidiary. See also Agreement below.
3. Based on what the employee agreed with ALD Automotive under item 1, the next step is to contact a car dealer who sells the vehicle the employee is interested in, test drive and request a business proposal for the desired car and equipment. The car offer sends the employee to Regent’s contact at ALD Automotive.
4. ALD Automotive checks that vehicles, prices, equipment, etc. comply with the car policy and calculates salary deductions.
5. ALD Automotive prepares a lease offer / agreement and sends it to Regent for approval.
6. Regent together with the employee approves and returns the signed rental agreement to ALD Automotive together with information about the driver, cost center, address, etc.
7. ALD Automotive orders the car and monitors delivery.
8. The employee picks up the car, checks that it is in accordance with the order (make, model, color, any extra equipment, tires, etc.) and signs a delivery approval.
9. ALD Automotive sends login information to ALD Automotive’s website and mobile app.

Regent has chosen to let our employees choose service agreements themselves because this has proven to be the most cost-effective. Thus, it is important that you who want to get a staff car also make sure to include a service agreement in the offer from the car dealer you contact.

Allocation of responsibilities

The employee is responsible for compliance with the policy. The employee must therefore know the content of the passenger car policy and follow this.
Regent uses ALD Automotive as a supplier of staff cars. There is therefore always ALD Automotive’s customer service who is responsible for all handling around the cars and they answer all questions. ALD Automotive also has knowledge of this policy and should be contacted if interested in acquiring a staff car.

Contact person

See Roles.

Purchase of peripherals

All purchases must go through ALD Automotive so that these are invoiced to Regent through a collective invoice, which is then deducted from the employee’s gross salary through a salary change.

For car washes, washer fluids and other items that can be purchased at OKQ8, the employee receives a credit card through ALD Automotive. This card should be used whenever possible to purchase car related items. The card can also be used to purchase fuel at a discounted price. For such costs, the invoice is shared and sent directly to the employee.

For tire storage and other purchases, the invoices must be sent directly to ALD Automotive. The employee receives information about the billing address and rules regarding this when purchasing a car.

Other costs can exceptionally be handled as normal private expenses after approval by the immediate supervisor.

GENERAL ABOUT STAFF CAR

Staff car is a benefit where the employee exchanges salary for a car. The car is rented by Regent from ALD Automotive via operational leasing and the fixed leasing rent includes insurance and tires throughout the contract period. When the lease, which is entered into for 36 months, expires, the car is returned to ALD Automotive.

Right to staff car

Everyone who is permanently employed has the right to a staff car. An employee car order must be preceded by an internal approval by the immediate manager.

Fixed monthly cost

The employee chooses a vehicle according to his or her own liking and taste within the framework of current safety and environmental regulations. Based on how many miles the employee will drive per year, a fixed total cost per month is calculated for the car. This cost is covered by the employee via a gross salary deduction.
Some advantages of personalbil compared to buying a new car privately is that the staff car model provides 12.5% withholding tax imposed on leasing fee and full VAT deduction on the operating agreement, the product can be combined with business-related discounts on vehicles, car insurance, tires, financing, etc.
The monthly price includes:

• The staff car
• Summer and winter tires and replacement of these if necessary and normal wear and tear
• Vehicle insurance including claims handling
• Lease interruption insurance that covers parts of all or part of the termination fee if the staff car is returned before the end of the contract period due to termination, illness, accident or death
• Technical support from vehicle technicians at ALD Automotive who also pre-approves workshop visits and monitors warranty and goodwill repairs
• Contact person at ALD Automotive for all questions
• Electronic driver guide as an app for smartphone and mobile web where all information can be found about the current staff car.

Other expenses

Costs that are not included in the monthly cost such as congestion taxes, bridge fees, deductibles, unpaid parking fines, termination fees if the car is returned before the end of the contract period, etc. will be charged to the employee via salary deductions as they arise.
Any damage, which has not been repaired on the body and interior of the car and which is classified as abnormal wear and tear, will be charged to the employee via extra salary deduction in connection with the return of the car. For more information on what is classified as abnormal wear, see the Return Guide on ALD Automotive’s website. If the employee has not ensured that the car has been serviced according to the manufacturer’s recommendations and does not return equipment that belongs to the car, this can also be a cost for the employee through salary deductions, in connection with the return.

Benefit value

According to Swedish tax rules, a taxable benefit arises when an employee for private use uses a staff car. The valuation of car benefit is based on templates. The benefit value must correspond to the savings an average beneficiary makes through the car benefit compared to owning the car himself. The standard rules cover both passenger cars and light trucks and the benefit value is calculated on the basis of the so-called new car price. The value of the car’s extra equipment is then added to the new car price. The new car price is fixed during the contract period, while the calculation of the taxable benefit value can be changed at the turn of the year.

Regardless of the day of the month the staff car is delivered, the full car benefit is paid for the entire month. When changing cars, the car benefit is paid for the car the employee has had for the longest month. The Swedish Tax Agency is responsible for the regulations regarding car benefits. More information about car benefit taxation can be found at http://www.skatteverket.se .

Service mile compensation

When driving in the service with the staff car, compensation is paid in accordance with the Swedish Tax Agency’s regulations.

Other drivers

The staff car is intended for use by the employee, however, there is nothing to prevent others from using the vehicle. The insurance is valid regardless of driver.

Environment

Regent works actively to reduce the environmental impact of its own operations. The staff cars Regent offers must therefore be environmentally classified according to the Swedish Tax Agency’s definition for this. All cars with electric or hybrid operation are also approved regardless of the Swedish Tax Agency’s definition.

Security

Regent cares about the safety of its staff and therefore only offers staff cars of make and model that have received at least five (5) stars in the EuroNcap crash test.

Leave, sickness and parental leave

In the event of leave of absence, illness, leave with parental benefit or lost driving license in excess of 3 months, Regent decides in each individual case to continue disposing of the staff car.

Right of set-off

For amounts the employee must pay according to the car policy and for any unpaid parking fines, deductibles, repairs, lost equipment, missed service, return costs relating to abnormal wear and tear compared to the Return Guide or costs incurred through negligence, Regent shall by special agreement be entitled to set off costs against salary according to the law (1970: 215) on the employer’s right of set-off.

Changes in and additions to rules for staff cars

If changes in the law or the authority’s action, in Regent’s assessment, gives reason to do so, Regent may make changes to and additions to the rules or stop offering a staff car altogether. However, the company must ensure that the employee is informed of the measure in time.

TO GET A STAFF CAR

Before the employee receives a staff car, the following steps need to be gone through.

Wage deduction

As previously mentioned, the employee’s salary is exchanged for a car through a fixed monthly cost that is deducted from the employee’s salary through a gross salary deduction. The monthly cost is basically based on the leasing rent, which in turn depends on the choice of car and its extra equipment as well as the estimated mileage.
This is how the gross salary deduction is calculated:

Gross salary deduction = (leasing rent (incl. Management package) + vehicle insurance + social security contributions for car benefit + leasing interruption insurance + vehicle tax) / (1 + social costs for salary)

Note! If the employee drives less than 100 km in the service per year, your salary deduction will be calculated including VAT as Regent for these cars according to current legislation can not make a VAT deduction on the part of the lease rent that relates to the car (except operating costs).
The salary deduction can be changed if the employee’s actual mileage changes from what was stated when the car was ordered. Feel free to consult ALD Automotive. Changes in the insurance premium and in the vehicle tax can also lead to a recalculation of the salary deduction.
Costs that are not included in the fixed monthly cost will be charged to the employee via an extra salary deduction on the gross salary as the costs arise.

Advice and tips regarding choice of make, model, extra equipment and price

The automotive market is constantly changing. New brands, models, laws and regulations come regularly. ALD Automotive continuously works with analyzes of affordable brands and models from an environmental, safety and cost perspective and publishes its car recommendations on a monthly basis. Regent recommends that the employee choose a vehicle from these car recommendations, see http://www.aldautomotive.se .
Another piece of advice is to avoid a lot of extra equipment that results in a higher lease rent. Examples of such equipment are sunroofs, integrated cinema systems, factory-fitted navigation systems or rim size upgrades (tire costs rise markedly). Equipment included in a package is usually advantageous compared to buying the parts separately.

DRIVING AND HOLDING A STAFF CAR

It is important that the employee takes care of the staff car. This section provides answers to most situations that may arise.

Care and maintenance

• Service the car according to the service intervals specified in the service book.
• Keep the car clean inside and out by washing it regularly.
• It is not permitted to retrofit equipment in the car that damages interiors or leaves marks.
• Contact ALD Automotive for questions.

Service

Personnel car needs service at regular intervals. When this is to be done is stated in the car’s service book. It is also very common today that vehicles themselves “tell” when it is time to book service, but not all cars. It is very important to service the car according to specified service intervals as a flawless service book is the prerequisite for the car’s guarantees to continue to apply. A missed service costs around SEK 12,000 in lost value on the secondary market. This is a cost that is charged to the employee upon return.

Changed mileage and mileage reporting

The employee’s salary deduction reflects annual mileage. If the mileage changes more than 20%, the leasing rent and thus also the salary deduction will be adjusted. For this reason, the employee will be asked to report the current meter reading on an ongoing basis during the rental period. This is done by logging in to ALD Automotive’s website.

Fuel journal and service mile allowance

The employee is responsible for fuel and for travel expenses when driving in the service according to Regent’s routines.

Deck

Tires are supplied by your dealer or special tire supplier. If the car is delivered during the summer period, the employee will be contacted by the tire supplier and receive information about which alternatives to winter wheels are available. Tires can, if desired, be stored at Euromaster.

Replacement of wearing parts and refilling of fluids.

The employee needs to obtain a service agreement for replacement of wearing parts such as brake discs and light bulbs as well as replacement of wiper blades and refilling of fluids in connection with service. Replacement of wearing parts and refilling of liquids must always be done by an authorized workshop, even if it takes place between service sessions.

Fault in the car

In the event of a fault in the car, the car dealer who delivered the car must be contacted or the workshop referred by the car dealer. Also inform ALD Automotive of the error. All repairs must be carried out at an authorized workshop. This is important for mobility guarantees and other guarantees to remain.

Insurance

The car is fully insured during the contract period. The deductible varies depending on the type of damage that has occurred. As the car is brand new, it is also covered by car damage insurance that comes with the car damage guarantee. This insurance is brand-dependent and the deductible varies with the brand.

Injuries and insurance matters

If the employee has an accident or if damage otherwise occurs so that the car needs to be repaired, the employee must report a damage. This is sent to ALD Automotive and to the company car manager at Regent as soon as possible, but no later than one month after the incident and then book an appointment at an authorized workshop. The employee is responsible for repairing the damage and for any deductibles. More information can be found in the driver’s guide or through ALD Automotive. In the event of non-notification of damage and / or unrepaired damage upon return, the employee may bear the cost of repairs.
In the event of fire and theft damage, a report must also be made to the nearest police authority. A copy of the police report must always be sent to ALD Automotive and the company car manager at Regent.

Parking fines

In the event of a parking fine, the employee is obliged to pay it within the specified time to the parking company. If the employee wishes to contest the parking fine, ALD Automotive must be contacted to obtain a power of attorney to pursue the matter further.

Travel abroad

If the employee intends to drive outside Sweden’s borders, the following is required:

• Power of attorney – certifies that the employee has the right to drive the car with the current registration number. May be required at police check.
• Registration certificate part 1 needs to be brought.
• Green Card – This is needed in the event of an accident to guarantee liability for payment and settlement of damages caused by vehicles from foreign countries.
• All documents obtained from ALD Automotive. Contact ALD Automotive at least 3 weeks before departure.

To return the staff car

When the contract period is coming to an end, the employee is contacted by ALD Automotive. The employee can then decide whether he wants to return the staff car and change car, continue to use the staff car or buy the car from ALD Automotive.

Extension of the leasing agreement

If the employee wishes to continue access to the staff car, ALD Automotive may, after approval by Regent, extend the leasing agreement for up to 12 months. The lease rent and thus the fixed monthly cost can change in the event of an extension.

Buy the staff car

At the earliest two months before the end of the contract period, the employee can receive a preliminary price for the car. The employee can get an indication of what the car will cost by visiting www.bilpriser.se and entering the car’s information. When the employee has paid the agreed price to ALD Automotive and / or arranged financing in another way and insured the car, the car passes into the employee’s possession and the car is transferred to the employee in the car register. Only the employee as driver of the car has the opportunity to buy the staff car.

Return

When the car is to be returned, it can be driven to ALD Automotive in Täby church village. It can also, after agreement with ALD Automotive, be handed over to the dealer where the new car is picked up, or at another agreed place for picking up the transport company.

To think about before returning

The car must be cleaned, insurance claims must be reported, any repairs repaired. Summer and winter tires, spare keys and other equipment belonging to the car must be included with the return. Here is ALD Automotive’s film about how it goes in the event of a return. Carefully read the Return Guide which can be downloaded from the website. Costs for abnormal wear and tear can be avoided by the employee being careful with the car during the rental period.

Return before the end of the contract period

If the employee needs to return the car before the end of the contract period, a termination fee is paid according to an agreement between Regent and ALD Automotive, constituting 30% of the remaining leasing rents. If the early return is due to termination, regardless of whether this comes from the employee’s or from Regent’s side, illness or accident, there is a lease termination insurance which in most cases covers the entire termination fee. Any excess part is covered by the employee. For more information about the terms of the lease termination insurance , see a separate appendix or contact ALD Automotive.

Agreement

The immediate manager draws up a Personal Car Agreement between the respective Regent company and the employee. The document is digitally signed and archived by the manager. Agreement templates are available for companies with ALD agreement.