FLEET drivers would happily see their company car tax bills double rather than downgrade to a smaller, cheaper vehicle or use public transport, new research has found.

Company car drivers lead all other motorists in saying they would pay more for their cars and their running costs, rather than use an alternative form of transport. But fleet drivers seriously underestimate the running costs of their car with most guessing it to be about £1,843 when the average cost is £5,200.

The importance drivers attach to their company cars is revealed in the RAC's Report on Motoring 2004, released this week. Its report, called 'Counting The Cost, Cutting Congestion', is the RAC's nationwide survey of the costs of motoring and methods it believes could help to cut congestion.

The report suggests the reason employees undervalue the cost of providing their cars can be attributed to what it calls 'what I don't see can't hurt me' – the invisible nature of the running costs being dealt with by their employer.

RAC Business Solutions managing director Duncan Wilkes said: 'Our report shows company car drivers are apparently willing to sacrifice an additional £2,500 per annum before they would consider switching to a smaller car.

'This is unsurprising, given the mileage company car drivers do each year. They want powerful, comfortable cars to get them around the country.

'Despite company car taxation now being based on CO2 emissions, comfort and space remain the predominant factors in their choice of car.'

Wilkes added its report found that 38% of female and 30% of male company car drivers stated there was nothing that could be done to part them from their cars.

'They would pay more, a lot more, to keep it and the only thing that might persuade them to give it up, apart from a job move, is a significant cash incentive,' he added.

The report found that company drivers had a cynical view of the taxation element of owning their cars and predicted increases of more than 16%. Almost 90% of drivers see this increase primarily as a Government revenue generator, it reported.

Wilkes added: 'They would be prepared to pay much more and still 'grin and bear it', considering a cost increase threshold of £2,109 before they would stop using the car or switch for a cheaper model.

'This is almost twice the threshold at which the typical British motorist would stop using their car – it is still well short of the real cost of running the vehicle.'

The survey also found that company drivers would not favour electronic road charging via satellite tracking as a method to beat congestion, with 22% expressing concerns about privacy. And they believe that using taxis or trains is only practical for short journeys.

Wilkes said: 'However, 63% agree that they wouldn't mind paying more in car taxes if the money raised was used to make driving easier, so emotional and personal choices are being made in preference to concern for the environment or fuel consumption costs.'

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