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Few businesses want to give up company cars, Arval finds

Date: 01 July 2019   |   Author: Sean Keywood

Most businesses are unwilling to give up company cars and turn to new mobility solutions instead, according to leasing company Arval.

The finding comes from the company's 2019 Mobility Observatory survey of 3,930 fleets.

In response to whether they would fully or in part give up their vehicles for a range of alternatives, just 7% said they would probably or certainly opt instead for car sharing, 9% for ride sharing, 8% for a mobility budget, 11% for a private lease vehicle and 7% for mid-term rental.

However, the size of the business concerned made a difference to attitudes, with just 3% of firms with fewer than 10 employees interested in car sharing compared with 14% of those with a staff of 1,000 or more.

While unwilling to give up their cars, there was still some interest in mobility solutions from fleets, with ride sharing already being used or considered for use in the next three years by 45% of respondents, car sharing by 31%, private leasing by 23%, medium term rental by 22% and mobility budgets by 21%. 

The survey also looked at why drivers would be unwilling to give up their company cars, and found factors such as: ease of motoring (mentioned by 16% of respondents), not having to finance their own vehicle (14%), no risk of ownership (10%) and delivery of a new car every three to four years (8%).

Head of the Arval Mobility Observatory in the UK Shaun Sadlier said: "There is a lot of discussion in corporate circles about mobility solutions at the moment and our research shows that interest is high. As a provider, we believe that there is considerable potential for these products. 

"What is clear above all, though, is that the company car looks set to remain the core transport method for the foreseeable future. 

"While decision makers and employees in organisations are interested in mobility solutions, it appears that the vast majority see them as supplementing or being a partial alternative to the traditional fleet." 

Sadlier said that in addition to the company car benefits named in the survey, it was also the case that when a typical multi-stop journey was undertaken, a car was the only practical option. 

He continued: "A mixed provision model is one that we have been saying for some time is the most likely to develop in the majority of businesses, where a range of mobility solutions are used alongside company cars, with employees using the most appropriate form of transport for each journey.

"Our belief is that, over the next few years, as more and more fleet managers become mobility managers, one of the most interesting developments will be the process that businesses undergo in learning how to use mobility options in the most effective manner."