More than a third (36%) of fleet decision-makers believe company car drivers will want to take a cash allowance rather than a company car.
The company car sector looks set to grow again. Andrew Ryan looks at the reasons for this and how fleet decision-makers can help ensure its future success
By Clive Buhagiar, head of operational services at Alphabet (GB)
But tax office says new pay reporting option could have skewed figures, with fall much less than suggested.
Fleets have seen an increasing number of drivers opting out of company car schemes to instead take cash allowances.
Licence Check is backing a call by fleet body ACFO for enhanced grey fleet management services due to a rising number of grey fleet drivers.
Organisations should not rush into offering drivers cash allowances without considering the benefits of a company car, warned Mike Moore, director of Deloitte.
Employees in increasing numbers are opting to take cash in lieu of a company car amid year-on-year rises in company car tax, risking the Government’s green agenda.
For the first time, the five biggest leasing companies account for more than one million vehicles. They now fund 61% of the cars and vans in the FN50.
The possibility of the company car being labelled ‘outmoded’ and only being provided to essential users was put forward by one fleet decision maker at the March 2017 Fleet200 breakfast meeting.
Delegates at ICFM Masterclass warned by Dan Rees, associate director, Deloitte Car and Mobility Consulting, that policy compliance is going to be a challenge.
The Institute of Car Fleet Management (ICFM) has launched new masterclasses to help members and non-members understand the changes to salary sacrifice and cash allowance schemes.
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