Lease as HR tool – Increase effective CTC of employee
In the first instance, Lease is being used to roll out a Car Lease Policy for the employees of the Company – it is an excellent method of providing remuneration, which allows an employer to increase the take home salary of an employee without increasing the CTC. It benefits both the employer and the employee.
In this case, instead of paying a lump sum CTC out of which the employee buys the car and thus pays EMI out of post tax salary, the employer restructures the CTC to include a vehicle of choice for the employee. This is not only a tax planning tool but allows the employee to get his/her dream car at a lower EMI, save more on a monthly basis and get a host of other advantages like better car discounts, better and cost effective insurance cover and maintenance cover and avoid the risk of resale value fluctuations.
Many employers still do shy away from providing the employee with a lease car due to liability considerations but at TZL, there are unique products, which completely remove such liability on employer. TZL works very closely with corporate HR and finance functions to help in structuring and then implementing a vehicle policy for your employees.
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Lease as a Fleet Management Tool
Corporate houses need vehicles or a fleet of cars for (a) travel needs of field sales/service force, (b) general employee transportation and (c) in the area of distribution of goods. It is a complex process that eats up valuable management and administrative time at the Corporate Level. Moreover, with lack of automobile expertise, inevitably inefficiencies crop in despite the best efforts at the management level. Companies do hire various vendors resulting in a multiple vendor system that ultimately increases cost and inefficiency to a large extent apart from the fact that there is no pricing transparency. TZL closely works with its clients in this space to understand their requirement and specific issues and uses its expertise and network to create a solution platform that can bring savings and increase efficiency - this is the TZL Fleet Services or Fleet Management Services.
Two main categories of application are -
A. From Car Rental to Fleet Lease - Corporate houses spend substantially to avail car rental services. TZL fleet lease aims at conversion of the existing car rental system with the leasing system with direct advantages like (a) brand new and better maintained cars (b) continued possession of the vehicles at all times (c) supplementary chauffeur and fuel card services (d) avoiding excess KM and or excess time charges resulting from fudging etc. The system promotes transparency, increases efficiency and brings about savings in cost. Another unique advantage is to substitute the usage of commercial number plate (yellow number plate) vehicles with private registered vehicles which allows free inter-state movement without any hassle in such cases where this is essential.
B. General Fleet Services - General fleet services refer to fleet management services inclusive or exclusive of the lease of the vehicles and the solution platform comprises of:
2.Maintenance scheduling and budgeting
3.Quality Control and Cost Control
4.Chauffeur and fuel management>
4.OEM co-ordination and on site off site maintenance
5.Facilitation of RTO activities like registration renewals/fitness checks etc.
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