Rising prices reducing choice for company car drivers

Company cars continue to be an emotive subject for employees, but rising vehicle prices mean they may not be eligible for the same vehicles they were several years ago.

This is because many organisations have not reviewed their choice lists, fuelling a shift towards cash allowances once again.

“Ten years ago a lot of companies were pushing out cash allowances, but we’re kind of seeing it coming back in again and I think a lot of that is to do with the actual cost of the vehicles,” said one delegate at the Fleet200 Strategy Network meeting this month.

“You have your companies who set their bandings for their company car schemes about five or six years ago, but perhaps haven’t realigned their bandings to the current market situations.

“This means a driver who was able to get a BMW 3 Series, which you could deem to be a standard company car, is no longer able to get one. This is why people are looking at cash allowances so they can get the car they want.”

Another added: “I find that whatever way you introduce, the drivers want the other way.”