That’s the verdict from Zenith, which says it’s seen a significant growth in new cars under its management over the last year.

As further evidence of the rise in the number of company car the firm cites SMMT figures showing that fleet sales rose in 2011 whereas private sales declined and says that drivers are swapping their privately owned vehicles for a newer company car, through either a traditional company car scheme or a salary sacrifice arrangement.  

The firm reckons that the new breed of lower-emission, high-powered vehicles from manufacturers has proved attractive to the fleet market, leading to lower tax payments as well as fuel and maintenance costs.

Zenith added: ‘Salary sacrifice is helping the reduction in overall emissions by attracting a new breed of company car drivers. Typical cars chosen are the lower emissions ones, which attract the best savings. The opportunity to have fixed costs, protected from market fluctuations, for example in insurance and maintenance, and the easy budgeting is highly appealing; whilst helping companies to provide their employees with safer, lower emitting cars.’

The firm has also highlighted the benefits for the employer from employees moving into company cars, including providing a solution to their duty of care and environmental responsibilities, as well as the opportunity to making cost savings.