Fleet Funding Options - Company Car or Cash?

Company car or Cash?

Some companies only provide a single car benefit option – company car, or perhaps a cash allowance – but this means that a proportion of the driver population is funded in a way that costs much more than it should because the funding option provided doesn’t suit the driver profile.  Even the cash allowance can be less tax and cost efficient than it could be by making use of AMAPs where available.

Others offer a mix of the two but struggle to identify to drivers the cost benefit of one against the other – so the potential benefit is lost.

Opticar advocates that by providing a choice of company car or structured cash, each driver can be shown the most cost effective funding option, and is able to make an informed decision to the cost benefit of both driver and company.

An Opticar structured cash allowance in the form of a Personal Car Plan (PCP) provides competitive finance allied with a managed maintenance contract, company wide business insurance cover, and full 24 hour driver support. The driver ‘owns’ the vehicle but has the right to return it at the end of the contact, and the company benefits from maximizing the tax and NI free payment opportunities available.

Even where a tax efficient Cash scheme exists (such as Opticash), A PCP is highly recommended because it enables the company to obtain better manufacturer terms for lower budget payments, and assists with Occupational Road Risk management.  It also provides a cheaper new-car option than a driver could normally find elsewhere.

Combine these choices with Opticash, and employees have all the value and flexibility they could want, at the least possible cost to the business.