Demand for company cars is increasing even though high fuel costs mean executives are doing fewer miles, it was revealed yesterday.
Nearly three out of four company car fleet managers expect demand for cars to increase in the next 12 months, a survey by GE Capital Solutions Fleet Services found. This figure was 8.8 per cent higher than a year ago and comes at a time when more employees are staying in the office or working from home.
Rising fuel costs headed the list of factors for a reduction in company car miles driven, with 95.4 per cent of the 828 respondents mentioning it – up 14.1 per cent on a year ago.
Improved communication technology, working from home and video conferencing were also mentioned, as was road congestion, which was raised by 86.2 per cent of those polled – a rise of 17.2 per cent on a year ago.
GE Capital Solutions Fleet Services managing director Rich Green said: “Our company car trends have consistently shown in the last few years that the company car is increasing in importance as a business tool. However, there is a definite trend towards less – but perhaps more thoughtful – car use.
“Rising fuel prices have reached a point where employers want to actively manage down the miles that their drivers cover.”