Fleet News

Growing demand for company cars

The trend towards providing company cars is set to continue into 2008, after 96% of employers said they expected more drivers who need a car for their job to opt for a company car.

This is up by 8% on the same period in 2006.

In addition, 67.9% of employers predicted that more employees would be offered a company car as part of their employment package, an increase of 6.7%.

The findings are contained in the GE Capital Solutions quarterly Company Car Trends report.

The trend suggests that the company car is staging a comeback following years when it has been widely accepted to be in decline.

Almost 100% of job-need drivers are now offered a company car by their employer as well as 78% of non-essential car users - this latter figure has risen 8.8% in the last 12 months.

This resurgence of the company car has been at the expense of cash for car schemes, says GE.


"Popularity of these has dipped by 5.8% year-on-year among job-need drivers," says the report.

"Employers expect a further fall of 4.2% in this provision during the next 12 months.

"Overall demand for all types of business car is set to rise at a predicted 4.2%."

Rich Green, managing director at GE Capital Solutions Fleet Services, said: "A situation has developed where employers are trying to pull both job-need and non-essential drivers back into traditional company cars, and employees are also pushing to get back into them."

Leave a comment for your chance to win £20 of John Lewis vouchers.

Every issue of Fleet News the editor picks his favourite comment from the past two weeks – get involved for your chance to appear in print and win!

Login to comment

Comments

No comments have been made yet.

Compare costs of your company cars

Looking to acquire new vehicles? Check how much they'll cost to run with our Car Running Cost calculator.

What is your BIK car tax liability?

The Fleet News car tax calculator lets you work out tax costs for both employer and employee