Fleet News

Cash-for-car deals are ‘too generous’

COMPANIES could be losing millions of pounds by offering overly-generous cash allowances as a substitute for a company car, according to one industry expert.

Allowances could be as much as 10% too high, claims Andrew Cope. Cope, chief executive of Zenith Vehicle Contracts, believes fleets may have to reduce the level of allowances for new employees to encourage more drivers to opt for a company car.

He said: ‘Company cars cost virtually the same to run today as they did four years ago. New car prices have fallen in real terms, servicing costs are lower, internet systems are creating additional savings and interest rates remain low.

‘Cash allowances, on the other hand, tend to be reviewed only once a year and the trend is very rarely downwards.’

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