Blogger puts spotlight on PCH maintenance costs

Clive Buhagiar, Head of Operational Services at Alphabet (GB) Limited joins the BVRLA blog community this week to look at the growth of Personal Contract Hire and asks if maintenance costs have been fully considered.

In his blog, Clive observes; “If your organisation offers company cars, you’re likely to have seen a growing tendency for businesses and individuals to consider switching from a traditional car scheme to a cash allowance.

“This switch often leads to employees taking a new vehicle on personal contract hire (PCH), but it’s vital that both companies and employees understand their responsibilities in this scenario. Far too many businesses are still unaware that employers retain responsibility for employees’ safety and conduct when they’re travelling on business, even if they use their own car.”

Clive adds; “One of the most overlooked factors when switching from a company car to PCH is the issue of maintenance.

“Essentially, the question is whether the additional monthly cost of a maintained contract matches the price a driver puts on their own peace of mind. As an employer, you still retain responsibility to evidence your process for managing driver risk for business journeys and a fixed cost maintenance package is a positive first step towards achieving this.”

Read Clive’s blog: Doing the maths on vehicle maintenance

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