Corporate Lease Program

Relocating a single staff member to Japan can be a challenge, but regularly relocating staff is, in some ways, more manageable. Take our corporate lease programs, for example. Rather than reinventing the wheel every time they send a staff member to Japan, some companies work with us to develop a systemic, tailored approach to providing services to their staff.

Companies have requested systems based on their staff member’s job grade or title, so their staff will have choices commiserate with their status; others use family size to determine options. In contrast, others have prioritized keeping costs low while still getting their staff members the cars they need with reliable after service.

We have gathered five sample plans to give you an idea of what is possible. Please use the tabs below to navigate them, and contact us to design a program around your businesses’ needs.

Based on Family Size

“Core Flex” point system used

Company Scenario

Company A has offices located from Northern Japan to Western Japan in Akita, Tokyo, and Hiroshima where they frequently send large numbers of staff. As the offices are in remote areas, the majority of the staff members need a car for commuting. Regardless of the location, however, the company would like to offer a car program to all their staff transferred to Japan.

Needs and Details:

  1. Cars are proposed based on the size of the staff member’s family.
  2. A car for the staff member’s spouse is available upon request.
  3. All car related matters, from the vehicle selection to registration and accident support, are handled by Lease Japan.
  4. A “Core Flex” point system is used, which allows the staff members to upgrade their car selections using allocated points.

Lease Japan's Solution:

  • Lease Japan selected a variety of cars for each category for families of 1-4, 5+, upgrade, and spouses; and created chart 1 (shown below).
  • Staff is free to pick a car from the category that reflects the size of their family.
  • The staff also have an option to use their allocated points to upgrade their car selection; often called the “Core Flex” point system. (In Hiroshima: 2 point increments, Tokyo: 3 point increments, and Akita: 1 point increment, to change from “Family Size 1-4” to “Family Size 5+” and “Family Size 5+” to “Upgrade Selection.”)

For example, a staff member in Hiroshima with a family of 2 can select a car from the category family size 1-4; also, staff can also upgrade the car selection to the category of 5+ by using 2 points, or to the upgrade selection category by using 4 points.

  • A second car for the spouse is available upon request. The staff member or spouse can select another vehicle from the second car category at the bottom of the chart.
  • Some car options include winter tires, as they are required to drive in certain areas while only needed for recreation in other areas.
  • Since the majority of staff members are over 35 years old, the chart includes the insurance for drivers aged above 35 as an example.  (*Voluntary insurance is categorized by age groups from 21, 26, or 35 years or older. Generally, the older the driver, the lower the fee.)
  • While the majority of the staff members are on 2-year assignments, the assignment terms differ depending on the contract of the assignee, and the lease fee will, in turn, depend on the lease term.

Below you can see charts for 12 and 18 month leases .  The lease fee for a 14 month lease, for example, will fall between the lease fee for 12 months and 18 months listed on the charts. A chart for any length of contract desired is available on request.

  • The charts below are updated annually.
  • New Japanese cars are order-made and there is an average waiting time of 2 months. A temporary rental car can be organized in the interim on request. Rental car arrangements are made according to Chart 2 below.

Chart 1:

image

Chart 2:

image

Based on Job Grade

Company Scenario:

Company B is requesting an easy-to-understand and straightforward corporate lease program for their staff members. The program should help the company's staff have a smooth car selection process. The goal is to have the staff member choose from a list of cars and pre-determined options in advance, all selected according to their job grade or title, to make the selection process quick and easy.

Needs and Details:

  1. Vehicle selection based on job grade or title.
  2. Car needed immediately after the arrival date in Japan.
  3. Staff may be single, couples or families.

Lease Japan's Solution:

  • Lease Japan contacts the staff member a few months before they come to Japan to start the car selection process with a chart of available cars based on their job grade.
  • The new vehicle is selected, and an order is placed.
    • If the leased vehicle is not out of the factory by the time the staff arrives, Lease Japan will provide a rental car until the leased vehicle is ready for delivery.
  • Various types of cars are offered, giving staff the flexibility to select a vehicle based on his/her family size, parking space and personal preferences (such as hybrid, SUV, minivan etc..
  • Since assignment periods vary by staff members, lease fees are set for three different terms: 12 months, 18 months and 24 months.
  • Since the majority of the staff are aged above 35, the chart includes insurance priced for drivers aged 35 years and older, as an example.  (*Voluntary insurance is categorized by age groups of 21, 26, or 35 years or older. Generally, the older the driver, the cheaper the insurance fee.)
  • Voluntary automobile insurance premiums differ according to the age of the driver, so lease fees are also separated by age: 26 years to 34, and 35 years old and up.
  • The staff can also choose some equipment options.
    • Up to two additional options in the list provided can be selected with a lease car.

Chart 1: Grade 7 & 8

image

Chart 2: Managers

image

Based on Specified Budget

Company Scenario:

Company C sends staff members to Japan on 2 to 3-year assignments. Each staff member is provided a monthly allowance for car leasing and is expected to select their own car. The staff sign the contract and make the monthly payments themselves.

Needs and Details:

  1. Lease vehicle must be within the fixed monthly budget specified by the company.
  2. Quick correspondence with the staff member and fast delivery of the vehicle is required in some cases.

Lease Japan Solution:

  • Lease Japan provides lists of vehicles as suggestions. The lists are divided into three categories (see charts below):
    • Small to Medium size
    • Medium to Large size
    • Used vehicles
  • The charts include a wide variety of cars, including compacts, sedans, wagons, SUV’s, minivans and sport vehicles.
  • Staff in need of a vehicle as soon as possible can go through the car selection process with Lease Japan quickly,  and receive a temporary vehicle while their lease car is being prepared.

Chart 1: Small to Medium Size

image

Chart 2: Medium to Large Size

image

Chart 3: Used Cars

image

Based on a Limited Budget (Used Cars)

Company Scenario:

Company D had leased cars from another leasing company and requested Lease Japan to handle maintenance arrangements between their staff and different auto garages, as the leasing company and the garage staff do not speak English. Through this maintenance arrangement, the company saw the value in Lease Japan’s English services and decided to change provider.

Needs and Details:

  1. A budget of JPY70,000 per month including consumption tax.
  2. Used cars aged an average of 5 years old.
  3. A contract inclusive of regular maintenance inspections twice a year arranged for the staff members and the auto garages by Lease Japan.
  4. Automobile tax, insurance, registration fee, and roadside assistance service also to be included
  5. A temporary car provided until the long-term lease car is delivered.

Lease Japan Solution:

Due to the limited budget range, Lease Japan committed to purchase a used car with the following conditions to provide a lease.
    • Vehicle selection list:
image
    • Provide used cars up to 10 years old:
      • Small to medium size
      • Committed to offering cars in the best condition as possible and maintaining that throughout the lease term.
    • Color choices of Silver, Grey, White, or Black
    • Standard car options include ETC device and GPS navigation system (when possible)
    • Lease fee up to JPY 70,000 including: *Vehicle with standard options (listed above) *Maintenance and its arrangement twice per year *Comprehensive insurance *24-Hour English Help Line for any accidents or issues
    • Rental car arrangements:
      • It takes on average one month to go through the entire process, including the collection of documents and registration of the car. While waiting for the lease car, a rental car according to the size of the transferee’s family can be provided.
image

Budget Range Plan

Company Scenario:

The company has a large and growing number of staff members relocating to Japan for an average of 2 years or longer. For each staff member wishing to enter the corporate lease program, they need a leasing budget to select their car. The company then signs the contract and makes the monthly lease payments.

Needs and Details:

  1. Budgets determined by job grade.
  2. Staff members freely choose cars within their budget.
  3. Flexibility in both budget and car selection to ensure both the company and staff members’ satisfaction.

Lease Japan's Solution:

  • An easy-to-understand program to include four budget ranges.
  • Budget ranges based on the staff’s job grade, from employee to executive.
  • A sample lineup of cars for each budget range that typically fits within the budget for a 2-year lease.
  • Direct contact with the staff members to analyze their needs.
    • Offer selection of cars which meet both the staff member's needs and budget.
  • Staff members are free to select any car that will fit their budget.
Grade Monthly Budget Range Approximate Vehicle Value
Employee JPY 80,000 – 100,000 JPY 2M – 3.5M

Sample Car Models

image
Toyota Corolla Axio
image
Nissan X-Trail
image
Toyota Voxy
Grade Monthly Budget Range Approximate Vehicle Value
Manager JPY 100,000 – 150,000 JPY 3.5M – 4.5M

Sample Car Models

image
Toyota Camry
image
Toyota Harrier
image
Honda Odyssey
Grade Monthly Budget Range Approximate Vehicle Value
Director JPY 150,000 – 250,000 JPY 4.5M – 6M

Sample Car Models

image
Lexus IS
image
Audi Q3
image
Mercedes-Benz A-Class
Grade Monthly Budget Range Approximate Vehicle Value
Executive JPY 250,000+ JPY 6M+

Sample Car Models

image
BMW 5 Series
image
Mercedes-Benz C-Class

Included in Lease Fee

*Lease Japan’s standard options: ETC device, English GPS navigation (where applicable), rear view camera, floor mats, spare tire/puncture repair kit *Full Voluntary and Compulsory Insurance for all drivers *Regular maintenance (every 6 months for domestic makers or 12 months for foreign makers) *24-hour emergency English helpline *Roadside service assistance

Conditions of the Estimate

*Consumption tax is not included. *Based on a 24-month lease. A shorter lease term will result in a higher lease fee. *The lease fee will change depending on the grade of the car and additional options. *Insurance is based on driver’s age of 35 or older and leisure purposes. Drivers under 35 and using the car for commuting will have a higher insurance fee, which will result in a higher lease fee. *Cars not listed can also be arranged upon request, and the lease fee will be similar to the value range of the similarly listed cars.