MANY HAPPY RETURNS?

Businesses that offer cash options for drivers look to switch back to traditional company car schemes, says latest Masterlease survey
June 2008

The majority of fleet decision makers would like to see a return to traditional managed company schemes and away from cash-for-car initiatives, according to the latest research from Masterlease.

The survey of almost 200 fleet decision makers said that 60 per cent would happily return to traditional company car schemes with cost reduction and employee demand being the biggest influencing factors in this decision.

 Triggered by rising fuel prices, 52 per cent of those questioned said that the company car was now more attractive to staff than a cash alternative.

Almost 50 per cent were concerned about the environmental impact of cash for car schemes and a further 57 per cent did not think that their employees were confident about calculating the costs of cash versus car. Other reasons given included the avoidance of confusion and better control of the company risk and health and safety, especially in light of recent duty of car legislation including the latest Corporate Manslaughter regulations.

Environmental concerns have been triggered by previous research that suggested that when given a cash choice, the majority of drivers use the money to buy older vehicles that produce an average of 16 per cent more CO2 than the more modern cars used in managed schemes.

The research was aimed at companies that had adopted financial allowance schemes after the so-called ‘dash for cash’ 2002 Budget when Gordon Brown, the then Chancellor of the Exchequer, made it financially more attractive for drivers to opt out of managed schemes.

Masterlease’s sales and marketing director, Clive Forsythe says: “The survey was fairly conclusive in that many companies that have gone down the cash route are now considering a move back to company cars. In fact only 15 per cent of those questioned would not consider changing back.”

“This is because of a number of factors, not least the growing need to better control costs at a time of rising fuel process. There is also concern for the environment and the increasing risk issues faced by businesses with drivers using their vehicles as mobile offices and travelling more miles on company business. A private car used for business falls off the fleet manager’s risk radar as he has no idea about its roadworthiness or its CO2 emissions, or indeed if it has been well maintained. This creates a blind spot for managers who would sooner be able to have some control over the risks their drivers are facing or creating out on the road,” he adds.

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