More and more businesses are putting drivers back into company cars.
And the popularity of a cash alternative is waning.
A Company Car Trends survey found that essential users – those requiring a vehicle to perform their job function – were all offered company cars.
Although a cash alternative was provided by some companies, availability had dropped from 52% to 38%.
Non-essential ‘perk’ users were also being offered company cars again: 72% were given the option, up from 61% a year ago. The cash option was also falling from favour.
Businesses gave health and safety responsibilities as the reason for the change. They wanted:
- More control over the type of vehicle
- And to ensure the vehicle was fit for purpose
“Businesses have concluded the best way to meet health and safety obligations is through company car provision,” commented Rich Green, managing director, GE Fleet Services, authors of the report.
More companies prefer company cars to cash alternative