Car Plan Info

[simplymhy]

Hello guys! Just a newbie * Tsikot! Glad now that got time to register and be a member. :D

For starter, need help/inputs from you guys.

When a company offers an employee for a car plan, naturally, how does it worked?

Can you enlighten me on this one before grabbing this "opportunity"?

Thanks in advance! ;)

[luckytruck]

you are usually given a certain amount per month to purchase a new car. they usually have fleet accounts, so you are automatically approved kasi company mo ang sasalo kung you leave the company. this amount usually cover the monthly ammortization plus a little extra for gas and maintennance. if your company is more generous, they wil also loan you the money for the downpayment of the vehicle.

since my car is fully paid, and i don't feel like getting a new one, my car allowance is being used to pay off my house and do a little renovation some companies do not allow this, swerte lang ako that mine does

andy

[the_wildthing]

Depends on the company.

A car plan is usually a "sharing" of cost between the employee and employer.

A typical example:

- company offers a 50% share off the actual cost
- employee chooses a car within the approved budget
- company pays for full amount upon purchase
- employee's salary is deducted a specified amount to pay for the remaining 50% in a fixed period, e.g. 4 years. Some companies charge minimal interest (lower than bank rate), some companies don't even charge any - that's the main benefit.

Other variations:
- company pays for full amount and does not charge the employee, but company maintains ownership, until after x number of years when car is sold to employee for the scrap value, e.g. 100 pesos or 1000 pesos. x can be anywhere from 3 to 10 years.

- Sometimes company share can go as high as 70%.

- Sometimes company has no share but employee can finance the whole amount at extremely low interest (benefit is taxable sometimes)

Bottom line: find out about the company policy and if you will have a "share", compute how much you can afford to pay monthly, considering other expenses of owning a car that the company will not shoulder.

Also check what will happen if you resign? Will you have the option to pay off the balance immediately or will it be forfeited and your payments returned?

[Altis6453]

In our company, its a little more straight forward.

The company sets a limit for the value of the vehicle depending on your rank (between P500k - P650k). They may also impose other conditions like, limiting the choice to only two manufacturers or dealers.

The sharing is 60% employer - 40% employee. The amount of the employee's share is deducted from his monthly salary for a period of 60 months (5 years). No interest is imputed since this is a company benefit provided to the employee.

Costs of registration, insurance and maintenance are all for the account of the employer since the vehicle is still registered in the name of the employer.

If the employee is separated from the company by reason of resignation, the employee is given the option to acquire the vehicle by paying for the remaining balance of the employer and employee share. If the separation is for cause, the car plan is rescinded and all previous payments will be forfeited in favor of the company. It gets a little hazy if the cause for separation is by way of retirement or retrenchment.

Upon completion of the 60 month period, the company will execute a Deed of Absolute Sale over the vehicle in favor of the employee. But, from that time on, the costs of maintenance and registration, as well as insurance will be for the account of the employee.

HTH!

[mazdamazda]

yup, iba ibang class ang employee plan for car.

like sa sideline namin (which is a preneed company). depende yan sa level mo.

for example, my level would qualify me for a P500,000 car plan. I can opt to either:

1) purchase a vehicle using the cash

2) sell my existing vehicle to them

either way, the vehicle's owner is the company. and they are the ones paying for the registration, insurance, etc.

the good part is that - if we hit the quota (say P500,000 worth of sales) then we don't get to pay the monthly amortization for the vehicle (say P5,000).

[1D4LV]

dito sa amin:

depende yung price range sa position mo, tapos depende rin yung company share sa position. (e.g. 50-50 from Mgrs and Sr. Mrs, 60-40 from AVP's-up).

yung insurance is deducted from the assignees, payable for a year.

payable for 5 years.

tapos dapat either isuzu or honda lang (mga sister companies eh...)

[simplymhy]

Wow! Thanks po sa inyong lahat. That's a lot of help. :D

[CLAVEL3699]

dito sa amin;

depende on how much you will take then kaw na bahala. like if you want 500t then 500t bigay syo kaso may interest mababa lang walang sagot ang company kaso nakapangalan syo yung car kaw din bayad like insurance and registration. Pagresign ka babayaran mo sya yung remaining.

up to 5 yrs sya.

Pangit noh.

[rsnald]

how 'bout yung mga sales reps among the tsikoteers, ano car plan nyo?

yung mga sales reps namin kasi dito, ganito deal:
1. budget P740-750K. company pays for the car 100% initially
dati, honda sila lahat. Now, back to Toyota.
2. then the SR pays for 30% of the car in 6 years
3. gasoline allowance, theoretically unlimited pero in practice, P20th/month
4. free maintenance, free insurance
after 6 years, the SR gets to own the car, yung nga lang, bugbog na usually yung car after 6 yrs
at saka di ka pwede mag-add-on any modifications on the car while it's under the car plan. stock dapat lahat, except the tint :D

am not an SR btw, but I wish i'd enjoy the car perks of our SR's hehehe. Imagine free maintenance? tyres, batteries, etc. huwaw!