Lex survey highlights strength of employee demand for company cars
The firm's survey found that almost two thirds of business drivers think their employer should offer them a company car. In addition seven out of 10 drivers still think company cars are a "status symbol", while 63% say that such benefits should be open to all.
Andrew Hogsden, head of Financial Consultancy at Lex Autolease, said: 'Employees are not demanding that company car schemes should become a free for all – that would be unrealistic. But we know from our research that they are prepared to sacrifice a portion of their salary in exchange for companies using their buying power to negotiate better lease rates on their behalf. Both parties will also share in the tax savings through reduced National Insurance Contributions, so it stacks up for all concerned.'
Lex Autolease says that there are few obstacles to firms opening up company car schemes to most employees. So called salary sacrifice schemes are permissible by the tax authorities and have been used to provide access to other staff perks, such as pensions and childcare vouchers.
'As long as the staff turnover rate is acceptable and employees are not left with a salary which is below the National Minimum Wage, there is little to be afraid of. Our customers see it as a way to make business savings, while providing employees with greater access to benefits. This can be a powerful tool for retention and recruitment.'
Lex Autolease's "Salary Sacrifice" product is available to all large corporate businesses with an existing fleet of more than 500 vehicles or an employee base above 1,000 staff. Companies can even decide to extend the scheme to employees' friends and family.