Company Cars Becoming Popular Again
Saturday, 27. August 2011
Image via Wikipedia
There seems to be a move back to company cars from cash for car alternatives. A few years ago when the Government changed the way the benefit in kind tax was calculated to a CO2 based system there was a big move to cash for car alternatives. Drivers liked the idea of driving a 3 year old BMW rather than a new Ford Mondeo but BMW’s are expensive to run, higher CO2 output make the road fund licence expensive, servicing cost get bigger every time a service is required and insurance costs seem to be spiralling out of control.
So drivers have been returning to company cars in their droves, enjoying decreasing benefit in kind tax as the CO2 emissions drop and new cars become more efficient.
Improved spec and safety features have also helped whilst the removal of running costs out of the driver’s household budget has been a contributory factor.
Another problem faced by drivers taking cash for cars is the tightening of credit, some drivers are failing to get credit or at least low rate credit and of course the regular amounts coming out of your account doesn’t help if you need additional support from the bank by way of a loan or overdraft.
There is also pressure from employers to move back to company cars where they can keep greater control over the cars and their upkeep given the tougher health and safety regulations.
As we only tend to fund new cars this is good news for me as well as the industry. What are your views, have you opted for cash? By Graham Hill
