Salary sacrifice hype outweighing take-up
Date:
10 April 2012
Just 0.6% of employees take advantage of company cars provided through salary sacrifice schemes, according to a new ACFO survey.
The news follows an ACFO study last year, which showed that nearly half of fleet managers had no interest in salary sacrifice programmes. Those findings provoked responses from firms such as Tusker and Leaseplan, which questioned whether it was truly representative of the market.
However, this latest survey "reveals that take-up would appear to be significantly below that indicated by many of the providers of such schemes," according to ACFO chair Julie Jenner, who added that "the reality would suggest that car salary sacrifice only appeals to a miniscule number of employees".
The poll, which attracted responses from members and non-members collectively operating almost 27,000 company cars and employing almost 250,000 people, revealed 1464 cars were being operated via a salary scheme.
A fifth of respondents (20.3%) already had a salsac scheme in place with almost a third more (32.7%) evaluating a scheme.
"ACFO is not opposed to company car salary schemes,"?concluded Jenner. "Indeed salary sacrifice is one of many useful tools in the vehicle funding and employee benefits tool boxes and its popularity may rise in the future, but it is not a panacea."
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