Fleet News

Comfort factor wins out

THE comfort factor of having a company car is winning out over the threat of tax rises for running fuel-thirsty vehicles, according to new research.

Pendragon Contracts has found that across its fleet, only a limited number of employees have opted out of company cars - even those who have been hit by higher company car tax bills.

Paul Ashton, sales director for the firm, said: 'We have been tracking a number of possible trends over recent months - such as a move out of company cars by high mileage drivers hit by bigger tax bills, an increased interest in dual-fuel vehicles and a swing towards diesel cars.

'With the exception of demand for diesels, these have failed to materialise.'

Ashton believes that drivers still value their company cars and are prepared to put up with higher tax bills for the hassle-free convenience of an employer-provided vehicle.

Although high-mileage drivers could have seen their tax bills almost double under the new carbon dioxide-based tax regime, it would be too difficult for them to move out of their job-need cars, he said.

'At the end of the day, these drivers may not want to pay the additional tax but their options are actually fairly limited,' said Ashton.

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