When you acquire vehicles, you are generally committing to them for a number of years. We are seeing a number of cities introducing or considering the introduction of clean air or low emission zones which can add cost if your vehicles don’t comply with emissions standards.
Diesel vehicles in particular have been hit hard, not just with road tax increases but also their residual values are expected to fall as a result of emissions scandals. These things must be considered when planning your vehicle requirements and vehicle requirements must be considered with a long-term view.
Offering a car allowance to employees removes a financially high-risk responsibility from a person who simply doesn’t have the knowledge or time to do the job in the best way and in the best interests of the company. And if vehicles aren’t business critical then there is less of a reason to hold this responsibility in the business.