Benefit-in-kind tax most influential for company car choice

More than a third (39%) of respondents cited benefit-in-kind tax as the most influential factor when selecting a company car, according to research by ALD Automotive.

Company Car

Its research, which surveyed 1,000 fleet drivers, found that 25% of respondents chose car specification and 17% chose fuel economy as the most influential factors.

Benefit-in-kind tax has risen in standing since the fleet management organisation’s 2012 survey, which found that 25% of respondents named car specification as the most influential factor, followed by fuel economy (22%) and benefit-in-kind tax (14%).

The significant change follows the Budget in March 2013, which announced that low-emission cars are no longer exempt from company car tax.

Helen Fisk, AutoSolutions manager at ALD Automotive, said: “Following the Budget, we’ve seen benefit-in-kind tax propelled to the top of the list of drivers’ priorities as they look more carefully at their opportunities to minimise their exposure.

“It’s clear that drivers are planning for future rises by selecting cars with low enough emissions to last a typical three-year agreement period. Even as the economy improves, maximising take-home pay remains a priority for many company car drivers.”