The growth of the cash for car allowance has rocketed from 6% of companies in 1992 to 66% in 1998 and 72% this year. But, despite the increase, most employees still opt for the hassle-free benefits of a company car. More than half the firms surveyed reported that 90% of eligible drivers shunned the cash option.
This year's survey found cash alternatives were offered by 82% of larger companies - which have a turnover of more than £500 million - compared to 59% of medium-sized companies (turnover £100 million to £500 million) and 51% of smaller companies (turnover less than £100 million). Monks Partnership said the increasing offer of cash allowances coincided with a growth in the number of companies considering personal leasing schemes as an alternative way of providing a car to staff.
The loyalty to company motoring varies with status. The survey showed that 44% of companies with a cash allowance available to directors reported that no director had opted for the allowance. The take-up was zero with 30% of firms offering the scheme to senior managers, but only 7% of companies providing cash in lieu of a car reported zero take-up among middle managers. The acceptance of cash for car schemes was greatest among the staff of smaller companies.
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