Is The Company Car Heading Down a Dead End Street?

Is the day of the company car over? Could be. Maybe fleet insurance is all van delivery, PAYG ridesharing and Zoom meetings now? Here’s some thoughts from the BVRLA;

As another lockdown leaves company car activity stalled in suspended animation, a new BVRLA report analyses the market and the long-term trends that will drive its destiny.

With all but essential journeys banned and new car registrations slumping to a thirty-year low, the company car sector has entered 2021 as it spent much of 2020, in an artificial position. Launched today, the BVRLA Company Car Report puts this vital but poorly defined part of the fleet industry under the spotlight. It provides much needed insight into the number of company cars, the type of people that drive them and manage them, and what motivates their decisions.

It also explores some of the key factors likely to influence the direction of the company car market in the future – assessing the impacts of grey fleet and cash allowances, electrification, the tax roadmap and COVID-inspired changes in business travel.

“The company car is the lifeblood of the motor finance sector and a vital tool for thousands of businesses, but as a market, it is very difficult to pin down,” said BVRLA Chief Executive, Gerry Keaney.

“It often feels as if no two people have the same definition of what a company car is, how many of them there are, or where the sector is going.

“BVRLA members own and manage hundreds of thousands of company cars, so if anyone can produce a definitive guide to the market, it should be us.”

To coincide with the launch of this new report, the BVRLA collaborated with the Association of Fleet Professionals (AFP) and 360 Media Group in hosting a ‘Where next for the Company Car?’ webinar, which was attended by more than 180 fleet professionals. Commenting on the report, AFP Chairman Paul Hollick said: “It is an essential read for any fleet professional wishing to understand the current factors within the UK Company Car Market.

“The Report highlights key themes and buying attitudes – highlighting the important role of the company car within corporate life.”