Company Car and Vehicle Allowances


As the world economy weakens and money becomes tight, companies are continuously searching for creative ways to contain budgets and lower operating costs. Furthermore, as businesses struggle to find the right balance between costs savings and attracting and retaining key talent, rewards packages are being constantly evaluated.

While company car and car allowance program s continue to be prevalent, especially for executives and sales employees, worries about high fuel prices have significantly influenced many companies to redesign these program s making them less generous to employees. Companies are keeping attraction and retention in mind as they adjust their programs realizing that an individual seeking a field sales job, for example, will expect a company car or car allowance program that protects their earnings from high fuel costs associated with business travel.

Survey Results

Most of the 25 percent who do not currently offer either type of program (89 percent) have not had the program in place within the last years. The remaining 11 percent of those companies however, indicated that they did have a car or allowance program but eliminated it within the last three years usually due to high administration and/or operating costs.

Search by Year

  • 2008
    This is a Member Only Benefit.

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