Fleet News

Cash option makes a comeback

CASH as a popular alternative to the company car has taken off again after three years of stagnation, with personal lease plans offered through employer negotiated schemes also proving popular, according to a new report. Buck Consultants' 'Company Car Report 1997/98' and the separate 'Directors' Car Report' are due to be published this week and reveal that the number of companies offering cash allowance has increased to 45% after having been static for the last three years at 36%.

Nicholas Bennett, head of the compensation and human resource practice at Buck Consultants, said: 'The popularity of the cash allowance, as an alternative to the company car has taken off this year, rising from 18% of companies in 1992. This is particularly the case among larger companies where cash allowances are now offered in 84% of cases.' And the move to cash appears set to continue this year with 22% of the 350-plus companies quoted in the survey indicating that they would be making changes to or introducing allowances in 1998.

However, while more companies are offering a cash option take-up varies dramatically between individual companies, with Bennett claiming that typically the larger the company the larger the take-up among staff who have 'perk' cars. 'We see the popularity of the cash allowance increasing; not only with more companies offering it as an alternative, but with more individuals actually taking the cash option where it is offered,' he said.

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