A DIRECTOR in charge of a small business wants a company car. The alternative of taking cash and running a private car comes a distinct second.
Cash alternative seen as inferior choice
The average spent on a managing director’s company car was £30,000. The most popular choice of car was a Mercedes.
The average cash alternative was £6500.
These are the findings from the annual Directors R£wards survey, published by the Institute of Directors (IoD).
The 2006 survey reinforces last year’s report – small business MDs prefer the security of a company car. Only 36% took the cash.
[contentblock id=9 img=gcb.png]
The directors of medium sized companies also seem keener on the company car. Last year 46% took a cash alternative. This year it dropped to 41%.
Their counterparts in large companies, however, are more inclined to take cash now instead of the car. Last year 30% took a cash alternative. This year it was 42%.
Average spend on directors’ company cars
- Small businesses: £30,000. Most popular car: Mercedes
- Medium businesses: £35,000. Most popular car: BMW
- Large businesses: £40,000. Most popular car: Jaguar
Average cash alternative to the company car
- Small businesses: £6500
- Medium businesses: £8500
- Large businesses: £10,400
Source: IoD
