ASSISTED VEHICLE PUCHASE SCHEME
1.
INTRODUCTION
Employees whom the Executive determines as essential for them to have a vehicle
available for business use shall be eligible for financial assistance to purchase a suitable
vehicle for such use.
2.
DETERMINATION OF LOAN AMOUNT
2.1
The basic calculation shall take into account the purchase price of the new or
second-hand vehicle which the employee proposes to acquire, making any
allowances in respect of:

the value of any vehicle which the employee offers in part exchange for the vehicle
which the employee is proposing to acquire

the selling price of any vehicle which the employee has disposed of otherwise than
by part exchange during the preceding 12 months.

A personal contribution by the employee towards the vehicle which the employee is
proposing to acquire
.
The Executive may grant a loan not exceeding 100% of the value of the vehicle (calculated
in accordance with 2.1 above)
2.2
Where a new vehicle is being acquired, the value is deemed to be the purchase
price (plus tax and including delivery charges and the cost of standard fittings in
compliance of statutory requirements e.g. seat belts and number plates.) The cost
of optional extras, insurance and road fund licence will be excluded.
2.3
The maximum level of loans granted to acquire a new vehicle under the scheme is
detailed within the Executive’s Local Agreements and Policies Handbook.
This maximum amount will be reviewed annually in March by reference to the Retail
Price Index for New Car Purchases with the sum adjusted upwards or downwards
according to movements in that index. Loans above the maximum may be granted
by the specific discretion of one of the Executive’s Directors.
2.4
Loans in respect of the purchase of a second-hand vehicle shall be accompanied by
a certificate as to the reasonableness of the price, the roadworthiness and the
estimated future life of the vehicle which it is proposed to purchase, given by a
qualified independent automobile engineer. Such documentation shall be provided
by the applicant at his/her expense.
2.5
Loans granted shall be repayable by monthly deduction from salary of equal
instalments of principal and interest.
2.6
In respect of new vehicles, the repayment period shall be no more than five years. In
the case of second-hand vehicles, over a period not exceeding 4 years or the
estimated life of a vehicle whichever is the shorter.
2.7
Loans will not normally be renewed at less than 2 year intervals. In the event of an
application within 2 years the Executive undertakes to consider each application
taking into account the circumstances of the individual, together with the interest of
the Executive.
2.8
The rate of interest applicable to all vehicle purchase loans is directly related to the
bank base rate prevailing at the time of application. Employees wishing to obtain
such a loan will be advised of the prevailing rate together with an indication of the
value of monthly repayments.
2.9
Vehicles purchased under the scheme must be registered and comprehensively
insured. The employee concerned must be sole policy holder (the policy may if the
individual wishes permit the vehicle to be driven by another person.)
2.10
Employees have a duty to maintain the vehicle in a good state of repair throughout
the period of the loan.
2.11
The loan will not be approved unless the Executive is satisfied that the type of
vehicle concerned is suitable for the performance of the duties for which it is
required.
2.12
Loans will become immediately repayable when an employee terminates their
employment with the Executive. The balance of principal outstanding on the loan
together with accrued interest shall be deducted from any remuneration payable or
by other repayment method specifically agreed by the Chief Financial & Systems
Officer.
2.13
An employee shall not dispose of the vehicle against which a loan has been given
without the consent of the Executive. Should approval to dispose be given then the
balance of principal outstanding on the loan together with accrued interest up to the
date of disposal shall become immediately payable.
2.14
The Executive reserves the right to modify the scheme in light of changing
circumstances after agreement with the trade union or to vary the scheme at any
time in order to comply with statutory or legislative requirements.
For and on behalf of UNISON
---------------------------------------------Chair, Branch Committee
--------------------------------------Date
For and on behalf of South Yorkshire Passenger Transport Executive
---------------------------------------------Passenger Services Director
AGREEMENT REFERENCE: P38 (JUL 07)
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