Importance of the company car increases
26 September 2011
The importance of the company car is rising, both among drivers and those business car managers looking after company fleets, helping underpin an increase in fleet sales which rose by 4.5% in August and are up 3.4% for the first half of this year.
Rising fleet sales have helped offset a corresponding decline in retail sales as businesses, which had squeezed costs to keep cash flow going during the recession, have begun purchasing vehicles again in growing numbers.
A recent survey indicated that the importance of the company car to businesses is on the rise again, following the end of the recession in 2009, with both UK employers and their employees increasingly recognising its value.
The quarterly company car trends research suggests several reasons why this should be so. Key amongst these is the recognition that the company car remains the best business transport solution available at a time when costs are being closely scrutinised and achieving real world results remains essential.
Also, in an uncertain economic environment, the research shows that employees have come to value the company car even more as part of their remuneration package.
Martin Brown, managing director at contract hire and fleet management specialist Fleet Alliance, which is on track for a record sales year in 2011, said there had been a sustained upswing in sales since the start of the year.
“We have seen a very strong performance in the business market so far this year, across all sectors,” he said.
Fleet Alliance had a very successful year in 2010 with a 41% increase in new vehicle orders as companies returned to the market in increasing numbers to replace ageing fleets. And that trend has continued into 2011 as companies of all sizes have continued the policy of replacing old with new.
“We had a very strong recovery last year and are now on track for a record year this year. More companies who previously put their fleet buying on hold have been back in the market this year replacing their vehicles,” he said.
Other industry commentators, such as leading accountants Deloitte, have also identified the upward trend in fleet sales and are now expecting the September fleet market to be a strong one, and with a year-on year increase for 2011.
Deloitte points to new models coming on stream allied to low interest rates and a ‘tipping point’ having been reached where it makes sound economic sense to replace old vehicles with new.
One strong fleet buying trend that Fleet Alliance has witnessed this year has been the move by companies of all sizes to look to reduce costs by buying greener, more environmentally friendly vehicles, which have also proved to be the most cost effective.
“By opting for lower carbon emitting vehicles, fleet buyers are not only meeting their corporate social responsibility agendas, they are also selecting the most cost effective options for their fleets.
“This is because of the reduction in BIK taxation and National insurance and the increased capital allowances that these vehicles attract. This is something we have been advocating very strongly to our fleet clients and it seems to have had an influence on their buying decisions,” he said.
For more information on of any of our products or services, please contact Fleet Alliance on 0845 601 8407 or email info@fleetalliance.co.uk
26 September 2011
The importance of the company car is rising, both among drivers and those business car managers looking after company fleets, helping underpin an increase in fleet sales which rose by 4.5% in August and are up 3.4% for the first half of this year.Rising fleet sales have helped offset a corresponding decline in retail sales as businesses, which had squeezed costs to keep cash flow going during the recession, have begun purchasing vehicles again in growing numbers.
A recent survey indicated that the importance of the company car to businesses is on the rise again, following the end of the recession in 2009, with both UK employers and their employees increasingly recognising its value.
The quarterly company car trends research suggests several reasons why this should be so. Key amongst these is the recognition that the company car remains the best business transport solution available at a time when costs are being closely scrutinised and achieving real world results remains essential.
Also, in an uncertain economic environment, the research shows that employees have come to value the company car even more as part of their remuneration package.
Martin Brown, managing director at contract hire and fleet management specialist Fleet Alliance, which is on track for a record sales year in 2011, said there had been a sustained upswing in sales since the start of the year.
“We have seen a very strong performance in the business market so far this year, across all sectors,” he said.
Fleet Alliance had a very successful year in 2010 with a 41% increase in new vehicle orders as companies returned to the market in increasing numbers to replace ageing fleets. And that trend has continued into 2011 as companies of all sizes have continued the policy of replacing old with new.
“We had a very strong recovery last year and are now on track for a record year this year. More companies who previously put their fleet buying on hold have been back in the market this year replacing their vehicles,” he said.
Other industry commentators, such as leading accountants Deloitte, have also identified the upward trend in fleet sales and are now expecting the September fleet market to be a strong one, and with a year-on year increase for 2011.
Deloitte points to new models coming on stream allied to low interest rates and a ‘tipping point’ having been reached where it makes sound economic sense to replace old vehicles with new.
One strong fleet buying trend that Fleet Alliance has witnessed this year has been the move by companies of all sizes to look to reduce costs by buying greener, more environmentally friendly vehicles, which have also proved to be the most cost effective.
“By opting for lower carbon emitting vehicles, fleet buyers are not only meeting their corporate social responsibility agendas, they are also selecting the most cost effective options for their fleets.
“This is because of the reduction in BIK taxation and National insurance and the increased capital allowances that these vehicles attract. This is something we have been advocating very strongly to our fleet clients and it seems to have had an influence on their buying decisions,” he said.
For more information on of any of our products or services, please contact Fleet Alliance on 0845 601 8407 or email info@fleetalliance.co.uk
Phone: 0845 601 8407 | Email: info@fleetalliance.co.uk | Legal information |
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