leasing
Tesco Staff Offered Personal Leasing Options
The staff of UK supermarket Tesco have been offered personal car
leasing through a tie-up between the supermarket and fleet
management and leasing company Lombard Vehicle
Management.
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The scheme, accessed through a password-protected website, is
separate from Tesco’s company car scheme for staff, said Tesco
spokesman Matthew Dransfield. While Tesco employs over 250,000
people in the UK, making it the country’s largest private employer,
the number of those eligible for the private leasing scheme was not
disclosed.
Benefits for staff choosing to take up the offer include 1,000
Tesco Clubcard loyalty points for every year a car is leased, a
carbon offset option for cars with sub-120g/km CO2 emissions, and
“special deals” on leases.
“It’s a great deal,” Dransfield said. “Maintenance can be
included [in the terms of the lease contract], but as an opt in, to
make sure we give people choice,” he added.
A spokeswoman for Lombard Vehicle Management’s parent company,
Royal Bank of Scotland (RBS), said: “Lombard Vehicle Management is
running a pilot car leasing scheme for Tesco employees currently
named Tesco Cars. This is purely for Tesco staff and forms part of
their employee benefits package. The success of the pilot will be
monitored before any formal decision is made to formulate the
programme.
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By GlobalDataRBS has recently agreed to sell back to Tesco the half-stake it
owns in the retailer’s Tesco Personal Finance venture for a
reported £950m. Once this has taken place, Tesco plans to ramp up
its presence in consumer financial services (see below), and even
has plans to launch itself as a retail bank – it will in the future
consider providing basic current accounts to customers.
The spokeswoman added: “Tesco Personal Finance was a joint
financial services venture between Tesco and RBS. It is completely
separate to the Tesco Cars programme and the announcement of Tesco
reaching an agreement to buy from RBS its 50 per cent shareholding
in Tesco Personal Finance Group Limited has no implications for the
pilot scheme.”
High street retailers eye motor insurance
market
Tesco and department store group John Lewis have both announced
plans to grow their presence in the car insurance market.
John Lewis has launched online motor insurance through its
Greenbee arm, with policies underwritten by Fortis.
Tesco, meanwhile, will promote own-brand loans and
insurance more heavily in-store.
It has also recently launched warranties for owners of used
cars under 10 years old with fewer than 100,000 miles on the
clock.
The retailers’ moves may cause more headaches for motor
dealers who rely on selling warranties and other finance and
insurance products as supplementary income streams, especially as
car sales volumes fall.
