Search
Close this search box.
Sign up for our weekly Newsletter

How the company car landscape will change following pandemic

Instead of entering into a long-term contract for every employee company car, businesses will look to provide a more flexible approach to corporate mobility.
tony donnelly chief executive goodwood corporate mobility

Share

16 April 2020

THE global Covid-19 pandemic will forever change the way UK companies provide their employees with company cars.

Instead of entering into a long-term contract for every employee company car, businesses will look to provide a more flexible approach to corporate mobility.

This will involve businesses paying for what they need to keep an employee mobile and then giving cars back when they’ve finished with them, sometimes after just a few days or weeks.

That’s the view of Goodwood Corporate Mobility.

Chief Executive Tony Donnelly said: “The hundreds of thousands of company cars currently parked on British streets and driveways being paid for by businesses without turning a wheel will inevitably drive a change in mindset.

“No two businesses have the same car operational need and that’s why they will start to explore the options available to them to create a segmented approach to corporate mobility.”

“It might be more efficient for the company to supply the driver with a car for a few days or a few months and then return it to the supplier when the period of business use ends, while some drivers may still need a car for a longer period. This requires a structured and disciplined policy to prevent unnecessary cost and abuse.

“With the new WLTP based company car tax and VED rates announced in the Spring Budget signalling increased taxes on petrol and diesel cars, both the driver and company may want to avoid committing to a longer-term contract on a car, unless it’s a zero emission tax EV.”

Donnelly said mileages will continue to fall in the future now that more businesses can see employees efficiently working from home. Technology will make this transition process the new ‘norm’.

He added: “Businesses are beginning to learn how to enhance the productivity of their people as a result of working from home, with procedures put in place to protect us all from the Covid-19 pandemic.

“Many of these will continue which means drivers will travel less on company business. It will change working practices for ever which will in turn fuel new employee mobility strategies.”

But GCM is aware there are still a large section of the company car driver population such as service engineers or public service workers who need to be mobile all their working hours and may need to transport equipment to carry out their work.

These would fall into the medium to longer term leasing contracts section of a new modern-day company car policy.

It also highlights the case for an employee who needs a car to get to their work during the week, but at weekends or holidays needs something larger. A structured and more flexible mobility strategy would take instances like this into account because control of cost and usage is critical.

Donnelly said: “The company car industry hasn’t changed much in many years, but businesses are already telling us that they are planning for change, not just in the way they run their company cars, but also how working from home will become an integral part of their employment proposition.”

 

 

Share this article

Facebook
Twitter
LinkedIn
WhatsApp
Reddit
Email

Want more motoring news?

Sign up here for our free weekly serving of motoring.

Sign up here for our free weekly serving of motoring.

Chris Wright

Chris Wright

Chris Wright has been covering the automotive industry nationally and internationally for 30 years. Following spells with consumer titles he became News Editor of Automotive Management (AM), Editor of Automotive International, International Editor for Detroit-based Automotive News, and Editor of Dealer Update. He has also co-authored several FT Management Reports and contributes regularly to Justauto.com

Latest news

Top