Fleet News

Cash-for-car falls out of favour

The majority of fleet decision makers would like to see a return to traditional managed company schemes and away from cash-for-car initiatives.

A survey of almost 200 fleet decision-makers found that 60% would rather return to traditional company car schemes, with cost reduction and employee demand being the biggest influencing factors in this decision.

Triggered by rising fuel prices, 52% of those questioned by Masterlease said that the company car was now more attractive to staff than a cash alternative.

Almost 50% were also concerned about the environmental impact of cash-for-car schemes.

Other reasons given included the avoidance of confusion and better control of the company risk and health and safety, especially in light of recent duty of car legislation including the introduction of the Corporate Manslaughter Act.

Previous research has also suggested that when given a cash choice, the majority of drivers use the money to buy older vehicles that produce more CO2 than newer cars used in managed schemes.

The research is particularly aimed at companies that have adopted financial allowance schemes after the so-called ‘dash for cash’ 2002 Budget which made it more attractive for drivers to opt out of managed schemes.

“The survey was fairly conclusive in that many companies that have gone down the cash route are now considering a move back to company cars,” said Masterlease’s sales and marketing director, Clive Forsythe.

“In fact only 15% of those questioned would not consider changing back.”

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