PAY AS YOU DRIVE (PAYD) - A NEW WAY TO OWN THE FUTURE
Octopus Pay as you Drive finance lets drivers
spread the cost of purchasing, maintaining & protecting their electric taxi more flexibility....
....by linking payments to earnings
Only pay for the miles you drive
With Pay as you Drive, similar to traditional energy bill, drivers are billed each month based on usage; in this case, the distance their taxi has travelled.
That means drivers have the freedom to enjoy time off without having the weight of a scheduled taxi repayment on their shoulders.
Giving you flexibility
If you're a driver who experiences seasonality in your work, or that takes extended holidays, PAYD allows you to adjust the repayment on your taxi to reflect your earnings on a month-by-month basis.
That means there are no charges during periods of downtime and reduced charges for difficult months.
KEY BENEFITS
Only pay for the miles you drive & retain the pride of owning a black cab with manageable Price per Mile repayments
Own the vehicle from day one & keep your expenses low while maximising your earnings
In fact, the more you drive, the quicker the loan is repaid
Certified by the Islamic Council of Europe, Pay as you Drive offers a viable alternative to mainstream funding for drivers of an Islamic faith
Receive a free home charger if you switch to the fairly-priced green electricity provider Octopus Energy*
Choose from a range of extended warranties & service plan options, all available within affordable Price per Mile repayments
Get a personalised quote Let us calculate your estimated weekly payment, & the savings that you are likely to make on the fuel costs of your existing vehicle. Quotes are flexible and the contracted mileage and target contract duration and be adjusted to best suit your circumstances.
Octopus tailors Pay as you drive packages to suit the individual customer’s usage, vehicle specification and deposit requirements, as per the below example:
As with all financial products, there are some sensible restrictions in place to ensure fair usage. For example, a minimum mileage applies to ensure the loan is repaid within the maximum period. This is calculated over a six-month period, which in this example would be 10,750 miles, meaning a 150,000-mile loan would take 7 years to pay back.
The mileage under contract can be tailored to how drivers use their vehicle, up to a maximum contracted mileage of 175,000 miles (and 7.5 years maximum duration).
If a vehicle consistently covers a low mileage over this time, a 6-monthly ‘catch-up’ payment would be required to maintain the price-per-mile for the remainder of the mileage.
Prices are subject to Retail Price Index (RPI), up to a maximum of 3%, to cover loan administration charges. This means that the price-per-mile is adjusted year-on-year based on inflation.
Drivers can choose to add or extend their service plan or vehicle warranty, and this is spread over the loan duration by adding a few pence to the per-mile cost.
All TXs supplied by Octopus are fitted with a small integrated telematics box at no additional cost. This box works in a similar way to a home smart energy meter; feeding mileage information from the odometer back to Octopus in real-time to ensure accurate monthly bills, without the need for manual readings or estimates
Pay as you drive allows high-mileage drivers to repay the loan more quickly, without penalty and without committing to a higher weekly payment as would be the case with a shorter HP contract.
The types of drivers who have shown particular interest in Octopus Pay as you drive loans include:
Drivers that experience seasonality in their work or that take extended holidays
Pay as you Drive offers them flexibility by allowing them to adjust the repayment on their taxi to reflect their earnings on a month by month basis
Drivers that generally cover lower mileage who are keen to own their taxi
Pay as you Drive allows for ownership with a low weekly finance payment versus traditional Hire Purchase (HP) by extending the repayment duration
Drivers that share their taxi with somebody else and who don't want to be penalised or face higher PCP contract charges for higher than expected mileage.
Pay as you Drive allows high-mileage drivers to repay the loan more quickly, without penalty and without committing to a higher weekly payment as would be the case with a shorter HP contract.
Yes. The profit share nature of this Pay as you Drive product has enabled Octopus to receive approval from the Islamic Council of Europe (ICE) that it is Sharia compliant.
Yes; if the driver switches their home energy supply to our fairly-priced green electricity partner Octopus Energy, we will include a free 7kW tethered EV charger with the taxi (subject to the home energy supply remaining with Octopus Energy for at least 24 months).
Yes, the driver must meet a minimum mileage every 6 months from the start of the loan. If not, they will be charged as if they had driven the minimum mileage (with the corresponding mileage deducted from their outstanding miles under contract).
The contract is for a tailored mileage; so it depends on how many miles you drive per year.
For example, if you average 25,000 miles per year and you choose to repay your loan over 150,000 miles, the minimum 6-month mileage is 10,750 miles, which would take 7 years to pay back. This duration is tailored to how the driver uses their vehicle.
12. What kind of warranties and servicing do you offer?
We can cover the cost of LEVC’s warranty and servicing packages. So the driver can choose to include the servicing package of up to 5 years / 150,000 miles; and the ‘Extended warranty (5 years / 150,000 miles) or the Extended Plus warranty (up to 7.5 years / 150,000 miles for driveline components). NB: The drive battery warranty is fixed at 5 years with no mileage restriction.
