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Company cars regaining importance, says new GE capital research

The company car has rapidly regained importance to businesses during the last two years, according to the latest quarterly Company Car Trends research from GE Capital, Fleet Services.

The perceived importance of the company car is now rated on aggregate 8.7
out of ten (where 10 is highly important) for essential car users compared
to 8.0 in Q3 of 2010 and 7.2 in Q3 of 2009. Before the recession, in Q3 of
2007, the response was as high as 9.7. Interestingly, 45% of the 250 fleet decision makers responding to the survey today give a maximum score of 10 in answer to this question while 85% opt for a rating of 8.0 or above.

The results for non-essential users are almost equally marked. In answer to
the same question, the latest aggregate score is 5.7, compared to 5.1 in Q3
of 2010 and 4.7 in Q3 of 2009. Gary Killeen, Commercial Director for GE Capital, Fleet Services UK, said that the perceived importance question provided an impression of how employers viewed the company car as a business tool and as a benefit to employees in today’s tougher economic and legislative environment.

He explained: "What the research indicates is that since the technical end
of the recession towards the end of 2009, the company car has become quite
markedly more important to UK employers and their employees.

"There are a number of reasons for this, we believe. Key amongst them is a
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 is essential.

"Also, in an uncertain economic environment, employees have come to value
the company car ever more as a part of their remuneration package.

"It is a timely reminder of the key contribution that the company car makes
to business life in the UK."

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