Fleet News

Two sides of the company car popularity coin

LEADING figures in the vehicle management and recruitment industry are disputing claims that the company car is losing its place as the ultimate job perk to pensions, extra holidays and insurance schemes. Benefits adviser Gissings has revealed that, from analysis of the choices of benefits by 1,500 staff at three major UK corporations with offices throughout the country, the company car was sixth on employee wish-lists.

But this is at odds with the view of Philip Jerome, new business development manager for Zenith Vehicle Contracts. He says that, while the arrival of personal contract purchasing agreements offered flexibility in the way vehicles were financed, the provision of a company car was still a crucial factor in winning employee loyalty. And recruitment agency Reed Personnel Services is showing its support for this view in providing its 250 drivers with a cash allowance for a benchmark car supplied by BCH Vehicle Management.

In Gissings' survey, the perk with the most appeal was a company pension, chosen by 97% of staff, followed by extra holiday (78%), life assurance (37%), private medical insurance (30%) and permanent health insurance/earnings insurance (30%). The company car came next with 22% of the votes.

Philip Jerome - whose company Zenith is exhibiting at The Employee Benefits Exhibition and Conference at the Royal Horticultural Hall, London, on September 22/23 - says: 'There are more company cars on the road than ever before. We are, however, beginning to see a change in the way employers fund their employees' car provision, although employees by and large still expect their employer to arrange their car provision for them.'

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