How does Employee Car Ownership (ECO) work?
Typically employees make a monthly contribution from their net salary for the vehicle, which must be sold to the employee on day one by the dealer at net cost.
A credit sale agreement is used to document the contributions to be collected and also outlines the final payment that the employee must make to satisfy this agreement. In lieu of the final payment the employee can opt to invite the dealer to buy the vehicle back from them.
If this option is selected the vehicle is taken back into stock by the dealer. This transaction removes the obligation on the employee to make the final payment, terms for the credit sale agreement can vary, but tend to be between 3-12 (max) months in duration.