According to the Monks Partnership, publishers of the annual Company Car UK report, company cars remain a standard benefit for the majority of senior managers regardless of the size or type of company they work for, with the possible exception of some financial sector firms. Although salaries may have increased, this year's survey shows that the typical salary at which a car is provided as a standard benefit is still around £30,000.
Q: Why do they get them?
Annual business mileage is the most common reason for providing a car on business needs grounds — 63 per cent of companies surveyed by the Monks Partnership gave this as the reason. The next most common reason is frequency of journeys (27 per cent)followed by competitor practice (25 per cent) and the need to carry tools or samples (22 per cent). The threshold for provision of a car based on annual business mileage is typically 10,000 business miles. According to the survey, 12 per cent of companies have a threshold of more than 15,000 miles and 12 per cent a threshold of 6,000 miles or fewer.
Q: If you are offered a car, can you take cash in lieu?
Usually. The percentage of companies which provide a choice of company car or cash allowance in lieu of a car has increased steadily over the past eight years says Monks Partnership. This year's survey shows an increase of four per cent over 2000 with 74 per cent of companies now giving their employees the choice.
Q: How much cash in lieu do companies offer?
A middle manager working for a subsidiary company with a turnover of between £100m and £500m could expect a median cash allowance of £6,100, according to Monks.
Q: Can you choose your car?
It depends who you are. According to Monks, 55 per cent of directors can choose any car subject to a price limit. This compares with 32 per cent of sales reps. Where a choice is provided, one in four firms have an approved list of at least four models. The value of the car allocated varies not only with seniority and salary level but also by the size of the company and whether it is a parent or subsidiary company.
Q: Is there a typical entry level car offered?
Most companies have a job level or grade at which a car is first provided as a standard benefit. In this case, this minimum status car is most likely to be a Ford Mondeo, followed by a Vauxhall Vectra and then a Rover. When the car provided is for someone who needs a car to do their job, the typical minimum is a Ford Focus range, followed by a Ford Mondeo, followed by a Rover model followed by a Vauxhall Astra.
Q: What if you are promoted?
Most companies don't let you have your higher status car straight away. They expect the newly-promoted employee to drive their old car until the next change date. The other alternative is to let them use the car left behind by the previous incumbent.
Q: What does the chairman like best?
More chairmen pick a Jaguar than any other type of car for their company car. Next choice is a Mercedes Benz followed by a BMW.
Source
The Facilities Business
Postscript
Company Car UK is available from Monks Partnership for £250 on: 01799 542222
