What is JM&M’s transportation benefit and how does it work?

Basically it is a subsidized rental program that makes your employee’s transportation costs almost zero. Your institution pays for a discounted vehicle so we can rent it to your employee at a low, monthly price. Your employee and your institution incur almost zero risk and your employee gains an invaluable benefit that none of your competitors offer.

How does insurance work?

All of our vehicles are insured by JM&M. That cost is included in your institution’s monthly fees. Your employee is also required to get rental insurance on the vehicle.

How old are the vehicles used in the program?

New or nearly new. We only purchase vehicles that are new or less than 18 months old. Once a vehicle is in rotation with your organization we continue to utilize it with your organization for up to 5 years. Employees typically are locked in to using the same vehicle for the 5 year time frame. If they leave your employment during that period of time, they must also return the vehicle so another employee may have the opportunity to rent it out. After that time, we take it out of rotation and replace it with another vehicle.

What happens to vehicles that age out of the program?

We typically sell them to someone within your institution. If you do not wish for us to sell them to someone within your institution, we will sell them to someone in another institution that we provide transportation services too.

Why doesn’t JM&M offer ICE vehicles?

Internal combustion engine (ICE) vehicles make up a majority of the cars on the road. They have been around for over a century. While they have been necessary, they are being phased out all over the world in favor of affordable vehicles that can run on renewable energy. JM&M is about looking forward to a sustainable and equitable future, not looking back at the past. Accordingly, we only offer electric and plug-in hybrid vehicles.

How does the fee structure for the transportation benefit work?

The least expensive vehicle in our transportation program costs over $36,000 with taxes and fees. Accordingly, before any benefit can be offered to an institution, we must have an institutional investment of at least $20,000 in the program before the first vehicle will be offered. Different institutions pay this money out in different ways. Some institutions make an upfront payment. Some make payments over time. We can only offer up to one vehicle for every $20,000 investment an institution makes into the program. When we sell a vehicle to people within your institution, we will use the funds from the sale to purchase a new vehicle for your program.

Who owns the vehicles in the transportation program?

All vehicles in the program are the exclusive property of Jen Marie and Me. We guarantee that the vehicles will be used to the benefit of your employees in accordance with the contract signed by both parties.

How are rental rates determined?

JM&M typically takes the out-the-door price of the vehicle and for every $25,000 charges $100 per month. If that model isn’t followed exactly, it is somewhere close to that. For instance, if a Ford MachE costs around $55,000, we would charge something close to $210 per month to rent it.

At the end of a vehicle’s five year term, how are resale rates determined?

Typically, JM&M takes the Kelly Blue Book estimated value and subtracts an amount equal to 50% of the rental payments made on the vehicle by the employee who was driving the vehicle. For instance, if a Tesla Model 3 had been in service for five years at a rental rate of $200 per month and was worth $27,000, we would take $27,000 - $6,000 (50% of $200 per month for 60 months) and sell the vehicle for $21,000.

What happens if we want to discontinue transportation benefits?

If your institution wishes to discontinue transportation benefits, you have two options:

1. Immediate Termination of Program (not recommended) - In this scenario, an institution immediately revokes the transportation benefit. Employees have 30 days to return the JM&M vehicles and find alternate transportation options. JM&M retains custody of all the vehicles used in the program. Only vehicles that have been in operation for over 48 months will be offered for sale to the institution or employees of the institution at our normal, discounted rate. All newer vehicles would remain with JM&M. No programmatic rebates or refunds are made to institutions that end their Transportation Benefit.

2. Gradual Sunsetting of Program (recommended) - In this scenario, the company reduces their contribution to the lowest minimum possible to maintain the current vehicles being rented by employees. This typically costs institutions around a two hundred a month per vehicle depending on what vehicles are being rented by employees. As vehicles age out of the program and are sold off, they are not backfilled. Institutions have the option of using the proceeds from vehicle sales to go towards vehicle maintenance fees. Vehicle sale proceeds in excess of fees are NOT refunded to institutions. No programmatic rebates or refunds are made to institutions that end their Transportation Benefit.