Fleet News

ACFO survey investigates popularity of car salary sacrifice schemes

ACFO wants to find out how popular car salary sacrifice schemes are with its latest online survey.

It is more than 18 months since ACFO last analysed salary sacrifice demand.

Since then evidence from suppliers would suggest that demand for car salary sacrifice schemes continues to increase.

But what is the reality?

ACFO wants to find out from members and non-members the true level of real-world demand for cars through salary sacrifice schemes from staff that by the nature of their employment don’t qualify for a company car.

Damian James, chairman of ACFO, said: “There continues to be a great deal of talk and media coverage of salary sacrifice schemes as a major development in the UK fleet market. Most vehicle leasing and fleet management service providers now offer some forms of these schemes, but just how popular are they in reality?

“We want to try and establish the actual impact these schemes are having and will continue to have on the UK company car parc and if salary sacrifice take-up is resulting in a reduction in the size of the ‘grey fleet’.”

ACFO’s last salary sacrifice survey revealed that company cars provided under such a scheme accounted for 5.5% of the combined fleet (almost 27,000 company cars) operated by survey respondents with just 0.58% of almost 250,000 employees eligible at responding companies taking advantage of such an initiative amounting to 1,464 cars.

At the time more than half of respondents were evaluating the introduction of a car salary sacrifice scheme or said they would be considering the merits of one in the future.

James said: “Evidence from our last salary sacrifice 18 months ago would suggest that today more companies are likely to have introduced a salary sacrifice scheme.

"However, implementing such an option within a wide-ranging menu of flexible benefit alternatives is very different to seeing widespread take-up among employees.

“We hope responses to our online survey from ACFO members and non-members will give the clearest view yet to emerge in the industry as to exact demand for cars funded via salary sacrifice among employees not entitled to a company vehicle by virtue of their employment.”

The survey, which will only take a couple of minutes to complete, is accessible here and is open to all fleet decision-makers - both ACFO members and non-members.

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