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Car Schemes Can Hit Staff Morale Says Toomey Opticar

Company car schemes that fail to recognise the need for flexibility in the options they offer drivers could be falling short as an employee benefit and even affecting motivation, say mixed car fleet specialists Toomey Opticar.

The benefits of a company car scheme are an attractive incentive for employers in attracting and retaining staff, but many firms operate schemes via a single funding arrangement. This is likely to be a traditional company car provided through contract hire, a structured cash allowance through an employee car ownership scheme – where an employee receives a monthly sum to spend on a car of their choice, with servicing, maintenance, road tax, breakdown cover and insurance included – or a cash for car allowance, paid in lieu of a company car to staff who use their own car for business.

Toomey Opticar says that by limiting employees to one kind of funding arrangement, businesses could not only be losing out financially, because they cannot take advantage of all the cost and tax savings available, but also costing their employees money, because the funding option they offer is not the most cost-effective for  their driving profile.

Peter Eldon of Toomey Opticar says: “Too rigid an approach to fleet finance could be getting in the way of employee benefits and motivation. For a sizeable fleet, a mixture of company car and structured cash options can enable drivers to choose the funding arrangement that best suits their driving requirement.

“The result is the right economic balance between company car and cash drivers, providing the best financial arrangement for both and enhancing the offering to new recruits and the existing workforce.

Toomey Opticar’s unique, online mixed fleet solution manages every aspect of a company car scheme, including online mileage logging and payroll calculation while maximising benefits in terms of cost, tax, administration and vehicle choice. It also allows drivers to trade up or down against the budget allocated to them, to select the car model and specifications they prefer at the right price.

For more information call 01582 518181.