Manufacturer discounts

Are you offering your staff too much choice?

Savings can be made by reducing car and van vehicle choices down to either dual or sole badge.

Manufacturers will often offer extra discounts on vehicles purchased if you choose to limit your selection to their vehicles alone. The leasing company can apply these discounts to the purchase of the vehicles which may have a significant impact on reducing your lease costs. If your company cars are funded via contract hire, any reduction in the lease rental will also result in a reduction in the amount of disallowed VAT you incur.

However, care needs to be taken not to apply a restrictive vehicle choice policy across your entire company car fleet, without considering the impact on driver morale. Reducing choice to a small number of manufacturers can have a negative impact as flexibility of vehicle choice is commonly ranked by employees as one of the most important elements a company car policy should have.

You may wish to think through the reasons why you have a company car fleet and whether the purpose is the same for the whole driver population - restrictive choice may work well for job need employees, but not for status or perk users.