Fewer companies are allowing employees to use their own cash to upgrade their company car, according to GE Fleet Services’ quarterly Company Car Trends (Q2 2007) report.

During the last 12 months, the percentage of companies supporting this practice fell from 59% to 49.5%.

In the same period, there have also been a number of other developments suggesting that the choice of company cars being offered is becoming more restricted.

Employers who describe themselves as having "an all badge policy with no restrictions" have fallen from 28.8% to 21.9%, while those following "an all badge fleet policy with restrictions" have increased from 67.5% to 72%, the report says.

Single badge fleets, while still rare, increased from 2.1% to 5.2%.

"There has been a definite trend in recent years prompted by growing concerns over duty of care and the environment to guide employees back into mainstream company car schemes,” Rich Green, managing director at GE Capital Solutions Fleet Services, said.

"This has caused a dramatic swing away from cash for car options but has also affected the company cars offered themselves. The corporate mindset that is developing is tending to increasingly see the car as a business travel tool as much as part of a benefits package.

Because of this, we are seeing reduced car choice.

Meeting duty of care and environmental responsibilities can mean making a smaller range of cars available to ensure that they are fit for purpose, and Company Car Trends reflects this."