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Company cars 'no longer a perk'

05 January 2007

  • Fewer cars given on driver's company status
  • Companies choosing cars on whole-life costs
  • High-performance models becoming rarer

Company car drivers are now experiencing less choice in their type of vehicle

The way employers allocate company cars is changing. According to research by GE Commercial Finance Fleet Services, only 39 per cent of cars are now offered on the basis of the driver's status within their company, compared with 52 per cent a year ago.

Drivers are more likely to be offered cars based on the vehicle's fitness for purpose than they were last year, as rising costs make fleet managers assess vehicles differently. More fleets are choosing vehicles based on a whole-life cost-per-mile calculation, rather than just making financial decisions on lease rates alone.

Increasing insurance costs also mean more company car users are being given driving training, and there is a move away from high-performance models.

The bad news for non-company car drivers is that this means there will be fewer high-specification, second-hand bargains in the future.

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