Company Cars; A Sacrifice worth Making?
By Andrew Leech, Fleet Evolution
The UK fleet market is one of the most established in the world but few are aware of the origins.
Originally the UK fleet market started to grow in the austerity period of the late 70’s when pay rise freezes led to company cars being offered to attract the best quality talent to an organisation, over the last few years there have been many changes but the latest developments in the company car market are more aligned with its origins, employee retention and attraction.
Successive governments have clamped down on ‘polluting’ vehicles with manufacturers always it appears...
...one step ahead with everything from a super mini to large executive saloons now returning over 60mpg whilst emitting less than 100 co2 which will keep drivers in the 15% company car tax bracket for a few years to come.
Additionally many manufacturers are set to raise the bar still further and against this setting coupled with NI rises and an increased squeeze on tax payers and employers we are seeing a new ‘vehicle’ for the company vehicle appear with thousands of new company car drivers taking delivery of their first company car.
Salary sacrifice has long been established as a way of funding everything from child care vouchers to mountain bikes and more recently large employers from pharmaceuticals to NHS trusts have rolled out schemes to their employees. Growth however was hampered by difficult and expensive scheme set up and limited suppliers making it difficult for all employers to offer such benefits. More recently however a number of specialised companies have opened up such schemes to smaller organisations with fantastic success with employer, employee and scheme provider.
We asked our customers what the main benefits of such schemes were, they replied;
- The employee saves approximately 35%... continued on page two >