The head of fleet management and leasing company Lombard Vehicle
Management (LVM) has called for employers to return their staff to
company car schemes, citing environmental concerns and duty of care
worries for companies that allow their employees to drive their own
cars on business.
A recent report by KPMG found that the vehicles chosen by
cash-for-car drivers are far less fuel-efficient than the average
company car, which typically produces up to 40 per cent less CO2
than an employee’s own-choice vehicle.
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Rob Bailey, head of LVM said: “A 40 per cent reduction in CO2
equates to approximately 8mpg, which would result in a saving of
around £600 in fuel cost over three years at today’s fuel prices,
and considerably more if fuel prices continue to rise towards £2.00
per litre as predicted.”
Bailey said that fleets should look more closely at sub-120g/km
CO2 cars, such as those produced by Audi, BMW, MINI and VW, as the
financial benefits for fleets can be substantial. He observed:
“[Sub-120g/km] cars also reduce the financial liability for
employers, as they have to pay Class 1A National Insurance
contributions on the value of employees’ benefits.
“When you factor-in the fuel savings, 100 per cent first-year
allowance for low-CO2 cars and CO2-based VED charges, it is clear
that businesses can save considerable money if they keep drivers
abreast of the their potential benefits to them of choosing a
low-CO2 car and offer a choice list embracing the latest entrants
into the sub-120g/km sector.”
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By GlobalData Motor Finance Issue: 44 – June 08
by Jo Tacon ,
Published for the web: June 27 08 10:57
Last Updated: June 27 08 10:57
