Fleet News

Low mileage drivers are opting out of company car schemes, says ABC

MANY low-mileage drivers who fail to break the 2,500-mile tax barrier, are opting out of company car schemes in favour of cash options, according to ABC Vehicle Consultants managing director Denis East.

'In relationship to the overall market size, the sub-2,500-mile 40% taxpayers are the minority, which means that when they do opt out of the company car scheme the effect on the market is minimal,' said East. 'Since the inception of our PCP production Reflections last July we have supplied more than 60 vehicles and we are constantly providing quotations for more. I believe that the market is shifting over quicker towards this sort of arrangement for specifically this type of driver.'

Reflections has been designed so that drivers do not notice any difference, apart from a contact point, to the way he or she ran their car within a company scheme. Fuel is the only concern the driver has to deal with. East accepts that for drivers travelling more than 2,500 miles a year and paying 25% tax, the company car remains a valuable benefit.

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

Comments

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