Fleet News

Private travel benefit now less viable

THE breakeven points where it makes financial sense for a company car driver to accept free fuel for private motoring have changed significantly following the Budget. Figures calculated by ACL show that a 40% tax payer with a 1.4-2.0 litre company car would need to drive more than 6,935 private miles in a petrol model and 8,187 miles in a diesel model to benefit from free fuel.

This assumes an average pump price of £3.02 per gallon for petrol and £3.16 for diesel, and fuel consumptions of 34 miles per gallon and 42mpg respectivelyFor a larger car with an engine capacity greater than 2.0 litres, the breakeven point moves to 8,117 private miles for petrol and 9,769 for diesel, assuming a 40% tax payer, and an average fuel consumption of 27mpg for the petrol version and 34mpg for diesel.

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