UK businesses prefer company cars, research finds

16th August 2017

The only way is company cars for now.

British businesses love their company cars and they’re not willing to swap them for anything else any time soon, according to new research.

A survey of 3,847 company fleets, conducted by Arval, found that just 11 per cent would “certainly” or “probably” be ready to exchange company cars for ride/car sharing or a mobility budget or card.

The finding highlights just how much the company car has become ingrained in the everyday operations of British businesses, with the vast majority of companies unable to identify a viable alternative right now.

Shaun Sadlier, head of Arval’s Corporate Vehicle Observatory in the UK, said: “It is worth underlining the contribution that the company car continues to make, providing a cost-effective, flexible and efficient transport solution, as well as serving as a highly successful employee incentive.”

That doesn’t mean UK businesses have completely ruled out any other transport options as part of their fleet mix. Half of the study’s respondents said they would be willing to consider alternatives in the next three years or already had one in place. These included car sharing (29 per cent), ride sharing (42 per cent) and a mobility budget or card (19 per cent).

Mr Sadlier added: “The enthusiasm that remains for the company car does not mean that businesses are not actively offering, considering or trying alternatives, simply that their application is quite limited for most mobility needs.”

Molly Benton, brand manager at Fuel Card Services, comments: “When it comes to efficient and effective day-to-day operations, it looks as if the company car will be the weapon of choice for some time.”