Half of respondents (54%) to the Employee Benefits/Alphabet Fleet research 2015 choose to source their company cars through a contract hire arrangement, while 22% use finance leasing and 21% provide a cash allowance for employees to buy their cars independently.
Ease of management is respondents’ key factor in choosing how company cars are sourced, as cited by 62%, while 59% claim to choose the most cost-effective option.
Just 18% of respondents offer tax-efficient cars via a salary sacrifice arrangement; however, of the 82% that do not do so, almost a third (30%) plan to but have yet to decide when. A quarter (25%) of respondents said they have considered introducing a scheme but rejected the idea, while 28% have never even considered it. Meanwhile 3% of respondents are currently introducing a scheme.