Company car or cash option?

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A telephone advice service to help motorists choose whether to join their company car scheme or opt for the cash alternative has been set up by Sainsbury’s Bank, which produces the Target Price in association with What Car?.

The new free-phone service aims to help company car drivers work out whether they are better off opting for a car or a lump sum instead. Trained staff will take motorists through all the financial calculations and the pros and cons of each option.

Sainsbury’s Bank says 40% of customers signing up to its Drive contract hire programme are now opting out of company schemes. That compares with just 5% before the new emissions-based company car tax system was introduced last year.

According to the bank, the new regime has seen a 20-fold increase in the number of businesses offering a cash alternative to their company car drivers. It also believes that many fleet managers are switching to more tax-efficient diesel models, meaning employees who only want to drive petrol cars are taking the cash option instead.

For more advice on choosing between a company car or cash, call the Sainsbury’s Bank line on 0800 096 0526 or click on the link for What Car?’s advice.