Key takeaways
- VGRD Fleet launches the new offer e.loop for business customers in Germany.
- Employees use an electric car or a hybrid via salary conversion (salary sacrifice).
- According to the provider, employees save up to 50 percent compared to private leasing.
- The entire process runs via an app. No down payment is needed.
What is e.loop?
VGRD Fleet brings the new offer e.loop to market. VGRD Fleet is the Volkswagen division that sells cars to large business customers. The offer targets business customers in Germany. Employees of these companies can use an electric car via salary conversion. According to electrive.net, the concept follows the well-known Jobrad model.
Jobrad stands for a company bike that employees lease through their gross salary. e.loop applies this principle to the electric car.
How does salary conversion work?
With salary conversion, employees give up part of their gross salary (their pre-tax pay). In return, they receive a company car. The company leases the electric car from VGRD Fleet. The employee may use the car privately and for business.
Tax benefit for both sides
The employee gets the car much cheaper than with private leasing. The employer saves social security contributions on the converted salary portion. The monthly leasing and maintenance costs can be deducted from tax as business expenses.
Which vehicles and extra services are available?
Electrified vehicles (electric cars and hybrid models) from the entire Volkswagen Group range are available. These include BEV (battery electric vehicles, pure electric cars) and PHEV (plug-in hybrids, cars with petrol and electric motors). According to the provider, no down payment is needed.
Companies can add extra services. According to electrive.net, these include:
- Maintenance and wear packages
- Tyre services
- Insurance
How does the rollout in the company work?
The employer first signs a framework agreement (a basic contract for multiple vehicles) with VGRD Fleet. Then employees choose their desired vehicle via the e.loop app. According to the provider, the entire process runs digitally via the app.
What does VGRD Fleet say about the offer?
„"e.loop enables companies to integrate electric mobility easily, economically and without extra admin work into their organisation. At the same time, employees benefit from attractive terms, with a price advantage of up to 50 percent compared to private leasing."“
— Holger Laur, Vertriebsleiter Großabnehmer bei VGRD Fleet, Region Süd, laut electrive.net
According to its own figures, VGRD Fleet delivers around 50,000 vehicles per year. According to its own figures, this makes the company one of the large providers for key accounts in Germany.
Frequently asked questions
- Which vehicles are available with e.loop?
- Electrified vehicles from the entire Volkswagen Group range, i.e. BEV and PHEV.
- How much do employees save?
- According to the provider, employees save up to 50 percent compared to private leasing.
- Is a down payment needed?
- According to the provider, no down payment is required.
- How is e.loop rolled out in a company?
- The employer signs a framework agreement with VGRD Fleet. Then employees choose their vehicle via the e.loop app.
