The need for good, accurate market information on cars has never been greater. Our survey shows that companies see company cars as an aspect of benefit packages which is increasing in importance. The combination of legal changes increasing corporate responsibility and of environmental pressure means both that cars are coming back, allowances are starting to fall and, when you develop your car policy, you need to look very closely at what you give when you give a car.
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The Company Car Survey Report 2011 presents the results firstly with a summary highlighting the main findings and showing trends based on comparisons with previous surveys.
Examples of summary pages from this year's report are:
The most popular method of obtaining company cars is contract hire. 50% of companies use this method. The proportion of companies buying new cars outright is 10%.
In 2010 45% of contributors used contract hire; 44% in 2009; for buying outright it was 11% in 2010 and 2009. In the 2008 report, 42% used contract hire, 15% bought outright.
The picture for contract hire and outright purchase (new) in recent years is:
The survey results are then covered in full, with each topic including graphs, statistical analysis and comments made by participants where appropriate.
Typical pages are:
The 93 companies (49.7%) who permit trading up were asked what rules apply.
The responses are as follows:
| Rules | Need Cars | Perk Cars |
| Free choice | 11 cos (11.8%) | 18 cos (19.4%) |
| Fixed contribution | 39 cos (41.9%) | 42 cos (45.2%) |
| Trading up 1 car grade/category | 21 cos (22.6%) | 20 cos (21.5%) |
| Trading up 2 car grades/categories | - | 1 co (1.1%) |
| Pay for extras only | 21 cos (22.6%) | 18 cos (19.4%) |
| Other | 2 cos (2.2%) | 2 cos (2.2%) |
The companies offering a car allowance were asked if they check the insurance cover of those who have taken the allowance and who have their own car. The responses are as follows:
| Yes | 111 companies (65.7%) |
| No | 55 companies (32.5%) |
| No answer | 3 companies(1.8%) |
A large part of the survey gives an analysis of actual cars provided for a number of typical need car roles and then for status/perk cars by salary level. The analysis covers list prices, makes and models of benchmark cars, lease values and car/cash allowances. For example, for need cars allocated to Sales Representatives the responses show:
Number of companies reporting: 88
| Upper Decile | 27931 |
| Upper Quartile | 25325 |
| Median | 22928 |
| Lower Quartile | 21370 |
| Lower Decile | 18852 |
| Maximum | 28205 |
| Average | 23083 |
| Minimum | 15542 |
33 companies (55.9%) specified their typical/benchmark cars. The most frequently mentioned are:
| BMW 3 Series |
| Volkswagen Golf |
7 companies (8.0%) give a free or limited choice to a fixed value ceiling for Sales Representative.
31 companies (32.0%) reported
| Lease cost £ | |
| Upper Quartile | 518 |
| Median | 450 |
| Average | 458 |
| Lower Quartile | 396 |
28 companies (28.9%) reported
| Car Allowance £ | |
| Upper Quartile | 6958 |
| Median | 6023 |
| Average | 5947 |
| Lower Quartile | 5010 |
The full list of participants is also included in an appendix to the report.
Our survey of company car policy is designed to show you how companies decide who gets what car (or car/cash allowance) and when.
The Company Car Survey Report 2011 is available to buy now. An electronic copy (pdf) costs £210, hard copies are £230 (including postage & packaging). To purchase the survey order here or contact us for more information.
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Send us an email If you have any questions and wish to find out more about Alan Jones & Associates Ltd. Please do not hesitate to get in touch with us. or call us on +44 (0) 1600 - 716916