Turning away from company cars could be
seriously bad for SMEs’ financial health.
This is the message from the head of Lombard
Vehicle Management, Rob Bailey, who has advised SMEs which offer
employees a cash-for-car to option to encourage drivers back into
company cars, as a way of controlling – and reducing – costs.

“If you offer drivers a cash-for-car option you are probably
paying considerably more than providing them with vehicles through
a well structured in-house fleet,” Bailey said.

Most cash-for-car schemes, he added, were introduced at a time
when financial circumstances were very different from how they are
today, and he pointed to the current “buyers’ market” and
taxation-based incentives to run a greener fleet as two strong
reasons to go down the fleet route.

“A recent report by accountancy firm KPMG concluded that company
cars produce up to 40 per cent less CO2 than those chosen by
cash-for-car drivers, who frequently buy used vehicles with poorer
emissions performance. A 40 per cent reduction in CO2 equates to
approximately 8mpg, which would result in a saving of around £600,”
he said.