Fleet News

Fleets flourishing in hostile environment

HEAVY benefit-in-kind tax, congestion and road rage have all failed to impact on the company car, according to the 1996 Lex Report on Motoring - 'Listening to the needs of Company Motorists'.

It reveals the fleet market has grown by 100,000 cars in the last year, up to 2.8 million, and that these cars are both bigger and more expensive. Since 1993 there has been a 77% increase in the number of company cars with an engine size of 2.0 litres and above, in line with the change in calculating benefit-in-kind taxation to a system based on list price, rather than engine capacity. In addition, the average price of company cars has risen to £14,500, from £13,700 in 1994, with precious little sign of drivers downsizing to reduce their tax burden. Over three-quarters of these drivers insist that their car is essential to carry out their job.

Even if congestion doubled journey times, only 16% of company car drivers would switch to an alternative means of transport to get to work, with even fewer (12%) swapping to other transport for business travel. And congestion is undoubtedly a contributing factor to road rage, which 78% of fleet drivers have suffered.

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment


No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee