restricting company car choice on mpg
restricting company car choice on mpg
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Discussion

CR0X

Original Poster:

1,863 posts

228 months

Thursday 21st April 2011
quotequote all
does anyone employer's do this (or anyone as employer themselves)?

I was driving a new Golf yesterday and averaged 58mpg for a 300 mile run, with a brand new engine, and it got me thinking.

We don't have a restricted car choice, in case each renewal request is based on its merits, but in an effort to drive through some efficiency and to boost eco-friendliness, I am looking at perhaps limiting the range of choice (cars and engines) to those with good acclaimed MPG figures.

Anyone have real-world experience?

rob.e

2,863 posts

307 months

Thursday 21st April 2011
quotequote all
If my employer did this I'd opt out or get another job.

The tax system is already geared up to encourage people to choose low emissions cars so why add further restriction?

Kevin VRs

13,832 posts

309 months

Thursday 21st April 2011
quotequote all
THe company I work for has a limit on lease monthy payments for each grade. This amount is increased by up to 5% dependent on CO2 emissions. For example the base is say £400/mth for cars over 150gm/km, it goes to £404 for cars 141-150gm/km, £408 for 131-140, £412 for 121-130, £416 for 111-120 and £420 for up to 110. Seems to work, most people take the cash option...... smile

edo

16,699 posts

294 months

Thursday 21st April 2011
quotequote all
A mate's company limit it on C02 emissions.

CR0X

Original Poster:

1,863 posts

228 months

Thursday 21st April 2011
quotequote all
We are the sort of company where employees don't generally up sticks and leave because of something petty like a slight change in company car policy, thankfully.

Generally, our staff (we only have 10 company cars) request a certain car, and I investigate whether it is feasible. What I want to do is introduce a policy (as we don't officially have one)that stipulates that any company car must achieve a stated MPG of 58mpg of above (or something like that), as whilst CO2 emissions obviously link into BIK payments, MPG has no direct relation. I am keen to change this, with the focus not being on BIK, but rather more economical driving.

5lab

1,917 posts

225 months

Thursday 21st April 2011
quotequote all
so are you saying you'd charge your employees based on actual mpg, or the claimed mpg of the car?

co2 is directly related to mpg. a gallon of fuel produces xx grams of co2. if your car goes y distance on 1 gallon of fuel, the co2 (for that journey) can be calculated

Ari

19,817 posts

244 months

Thursday 21st April 2011
quotequote all
CR0X said:
as whilst CO2 emissions obviously link into BIK payments, MPG has no direct relation.
Yes it does. As a general rule the more fuel a car burns the more it puts out of its tail pipe.

bodhi

14,581 posts

258 months

Thursday 21st April 2011
quotequote all
I wish people would stop hiding behind such tedious expressions as "Efficiency" and "Eco-Friendliness". Just come clean and say you're too tight to let your employees run anything interesting?

CraigyMc

18,369 posts

265 months

Thursday 21st April 2011
quotequote all
bodhi said:
I wish people would stop hiding behind such tedious expressions as "Efficiency" and "Eco-Friendliness". Just come clean and say you're too tight to let your employees run anything interesting?
My company has porsches and the like on its list. In fact, you can have basically any car you like (specific exclusions: caterfields, Lotus).

All they've done is put a levy on anything costing over £25K or producing more than 140g CO2/km. You can still have that M5 you always wanted, but it'll cost ya...

C

McSwerve II

323 posts

228 months

Thursday 21st April 2011
quotequote all
My company (multi national construction business) has an upper limit of 130 CO2’s for all company cars.

I went for a 320 ED which isn’t too bad, and cheap as chips for company car tax at 109 CO2’s


More controversially they are also bringing in the same criteria for people who opt out of the company car scheme and take the car allowance! That’s the bit that has people spitting feathers.

rob.e

2,863 posts

307 months

Thursday 21st April 2011
quotequote all
CR0X said:
We are the sort of company where employees don't generally up sticks and leave because of something petty like a slight change in company car policy, thankfully.

Generally, our staff (we only have 10 company cars) request a certain car, and I investigate whether it is feasible. What I want to do is introduce a policy (as we don't officially have one)that stipulates that any company car must achieve a stated MPG of 58mpg of above (or something like that), as whilst CO2 emissions obviously link into BIK payments, MPG has no direct relation. I am keen to change this, with the focus not being on BIK, but rather more economical driving.
I'm glad I dont work for you wink

How about; when someone's due for a change of car, you incentivise them with a cash kick-back of say, half the savings on fuel cost they can make vs. their current car - that way both the employer and employee have a benefit. Hold the payment back to the end of the year/contract so if they leave you;ll get the whole benefit. Post the results as a league. This may encourage eco driving and efficient car choice and bring in an element of competitiveness and incentive/motivation that is lacking if you just impose an arbitary limit?

white90

2,392 posts

213 months

Thursday 21st April 2011
quotequote all
Unless you need to start penny pinching
you only run 10 cars why worry.
seems like a tight fisted approach to me.
they can always drive these "efficient" cars very badly saving you sod all.

Bonefish Blues

36,515 posts

252 months

Thursday 21st April 2011
quotequote all
We have CO2 bands by grades and use a whole life cost method rather than pure lease costs.

If someone wants to trade up then they can, but generally the more consumptive/emissive, the higher the cost, so this doesn't happen as much as it used to.

GT03ROB

14,023 posts

250 months

Thursday 21st April 2011
quotequote all
McSwerve II said:
My company (multi national construction business) has an upper limit of 130 CO2’s for all company cars.

I went for a 320 ED which isn’t too bad, and cheap as chips for company car tax at 109 CO2’s


More controversially they are also bringing in the same criteria for people who opt out of the company car scheme and take the car allowance! That’s the bit that has people spitting feathers.
Ergh wot ?? They dictate what cars you buy with your money??

XDA

2,153 posts

214 months

Thursday 21st April 2011
quotequote all
Yep, my current and last employer restrict company cars based on co2.

In my current job, we've all been issued with brand new 1.6TDi Bluemotion Golfs but that's under review.

In my last job, we were given 1.6HDi 85bhp Peugeot 308's.

Unfortunately, those who decide on the fleet only look at co2 emissions and not the practicality of chosen vehicle. rolleyes

McSwerve II

323 posts

228 months

Thursday 21st April 2011
quotequote all
GT03ROB said:
McSwerve II said:
My company (multi national construction business) has an upper limit of 130 CO2’s for all company cars.

I went for a 320 ED which isn’t too bad, and cheap as chips for company car tax at 109 CO2’s


More controversially they are also bringing in the same criteria for people who opt out of the company car scheme and take the car allowance! That’s the bit that has people spitting feathers.
Ergh wot ?? They dictate what cars you buy with your money??
Yip. If you take the cash to sort your own car out.

Quite a few companies state an allowance bought car has to: representative of the company / 4 doors / no convertables / and the like.

CR0X

Original Poster:

1,863 posts

228 months

Thursday 21st April 2011
quotequote all
our current fleet consists of (amongst others):

335d Touring
Honda Accord 2.2
Honda CRV 2.2
Mini Clubman D
VW Golf 2.0 TDi Match
Skoda Octavia vRS TDi
BMW 320ED

So we have a wide varied selection, but some will be getting 36 mpg, and some others 58 mpg+, so there is a difference, and when calculated across 20K miles, it adds up.

I'm not talking about putting everyone in Golf Bluemotions, especially as I wouldn't drive one, but it is a case of saying that we want to achieve good efficiency, and we operate in an industry where our clients, whilst not expecting us to be ultra-environmentally friendly etc), will appreciate the strategic choice.

I got congratulated for driving an efficient and 'clean' Golf yesterday by a client, as they expected me to be in a Jaguar or Merc.

It is as much of a culture thing about doing things differently to everyone else, so therefore, we aren't going to be "ultra eco-freakish" about cars, but we WILL do what we can.

einstein75

120 posts

194 months

Thursday 21st April 2011
quotequote all
I work for a leasing company and have a number of accounts where the car policy is set up using MPG and/or CO2 retrictions - still gives plenty of choice if you're sensible about it whilst improving your eco credentials.

More and more companies have sustainability policies, applying this to the fleet is an effective way of getting tangible proof of reducing carbon emmissions keeping all stakeholders happy.

Matt UK

18,084 posts

229 months

Thursday 21st April 2011
quotequote all
McSwerve II said:
GT03ROB said:
McSwerve II said:
My company (multi national construction business) has an upper limit of 130 CO2’s for all company cars.

I went for a 320 ED which isn’t too bad, and cheap as chips for company car tax at 109 CO2’s


More controversially they are also bringing in the same criteria for people who opt out of the company car scheme and take the car allowance! That’s the bit that has people spitting feathers.
Ergh wot ?? They dictate what cars you buy with your money??
Yip. If you take the cash to sort your own car out.

Quite a few companies state an allowance bought car has to: representative of the company / 4 doors / no convertables / and the like.
The company I just joined does this.

Even though I take the cash, they still impose restrictions based on age, type and CO2.

They can do this as the catch is you have to let them insure it on their group policy and you have to use a fuel card. So you have to give full car details to get insured and fuel it.

It's a rubbish scheme, but seeing as I just use the car to get to the airport and back each week, I'm not overly fussed. Hence why I drive a crappy 1.3 Toyota hatchback. It's the only way I can be quids in on the scheme to have a fun car on the weekends.

Watch more companies do it though. I'm sure that I was told that by having all company/owner cars under 190 CO2, they get some sort of corporate tax break. Could be bks though.

mr_fibuli

1,109 posts

224 months

Thursday 21st April 2011
quotequote all
McSwerve II said:
Yip. If you take the cash to sort your own car out.

Quite a few companies state an allowance bought car has to: representative of the company / 4 doors / no convertables / and the like.
I remember my ex having to prove to her company that our 200sx could "comfortably seat 4 adults", in order to get her car allowance. Bit of a push that one.