Fleet News

Cash for car under threat by UK fleets

DUTY of care responsibilities are prompting an increasing number of fleets to review their approach to cash for car schemes, according to executives at one of the country’s biggest leasing firms.

Lex Vehicle Leasing bosses have claimed the number of companies reconsidering their decision to offer cash as an alternative to the company car has grown, with many of those switching back to traditional arrangements.

This is because new safety regulations are becoming too much to administer.

Business development manager Richard Parker said: ‘In the past two months I have been involved in many fleet reviews with customers and most have changed their approach in offering cash alternatives to the company car.

‘Pressure within the fleet industry about the safety issues has raised many directors’ awareness of their duty to driver safety.’

Parker notes that although a properly constructed cash opt-out or cash-for-car scheme will provide the required adherence to safety legislation and contain many aspects of best practice, it is companies who simply offer cash and allow employees to look after themselves who may fall foul of the legislation.

He added: ‘Directors now realise they are at potential risk of being charged with corporate manslaughter should a driver cause a major incident through a defect with their car. Many have decided to concentrate on their core business and rely on experts to manage their vehicle management for them.’

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