THE typical salary at which a company car is provided is £32,500 and the business mileage threshold is about 10,000 miles, according to Monks Partnership.

The employee benefits specialist's Company Car UK 2002 report also revealed that only 24% of firms now outright purchase their fleet vehicles, down from 27% last year, while contract hire accounts for 47%.

The report, based on interviews with 174 firms covering 113,801 cars, showed that 62% of firms control fuel costs using fuel cards, up from 60% last year, but only 25% of firms have a full-time fleet manager.

The size of cash allowances in lieu of a company car varies, starting at an average of £4,355 for minimum status cars, rising to an average of £5,702 for middle managers, and £7,253 for senior managers. Directors receive £8,818 on average, but the figure differs by thousands of pounds depending on the size of the firm.

Company Car UK 2002 is available from Monks Partnership for £275. Call 01799 542222 for details.