A growing number of businesses are opting to offer PCH schemes to cash takers alongside the traditional company car, in order to avoid issues with older grey fleet vehicles.
It enables fleet operators to manage grey fleet drivers more effectively while also improving their carbon footprint, according to Grosvenor Leasing.
Shaun Barritt, CEO of the Grosvenor Group, said a rising number of companies are choosing its personal leasing scheme, which it offers in partnership with Select car Leasing.
“With an in-house personal leasing team based at our head office alongside our corporate contract hire and fleet management teams, when drivers take the cash option they are far more likely to move into a Grosvenor PCH car from their company car,” he said.
“As a result, the cash driver’s new personal lease car is likely to be low emission, and will be properly serviced, taxed and not need an MOT for three years. It is also managed by the same safe pair of hands that runs our customers’ company vehicles and becomes a private car that the company is proud for their employee to use for business,” Barritt added.
According to the BVRLA’s latest company car report, the true company car market has been reducing year on year since 2017 and the number of privately registered cars has been increasing at a faster rate than those owned by companies.
The average age of grey fleet and cash allowance cars is older than both lease cars and those funded through a salary sacrifice scheme, and the average fleet car is 29% cleaner than its cash allowance counterpart.
Barritt said: “This all points towards the fact that when drivers take cash in lieu of a company car, they are choosing older, higher emission vehicles that are increasing the company’s overall carbon footprint for business travel and amassing an ever-more problematic grey fleet.”
He added: “There is no doubt that if you provide a driver with a superb range of PCH offers at the moment they receive their cash allowance they are more likely to choose the personal leasing route rather than spend that money elsewhere on something old, polluting and unsuitable.”