When it comes to employee perks, the debate between company cars and car allowances has always been heated. To settle the question (or at least get a clearer picture), we ran a LinkedIn poll asking professionals which option they prefer.
The results were fascinating:
- 🚘 Company Car: 40%
- 💵 Car Allowance: 60%
This split not only highlights changing workplace priorities but also sheds light on what businesses and employees value in 2025. Let’s dive deeper into what these results mean for employers.
Why Did Car Allowances Win?
The majority (60%) of respondents leaned toward car allowances. There are a few possible reasons behind this preference:
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Flexibility Above All
Employees increasingly want freedom to choose their own car—whether it’s an SUV for family needs or an electric vehicle to reduce running costs. A cash allowance makes this possible. -
Simplicity for Employers
Car allowances reduce the administrative burden of managing a fleet. Employers can simply add a fixed sum to payroll instead of handling leases, insurance, and servicing. -
Tax Transparency
While allowances are taxed as income, employees know exactly what they’re working with. This predictability appeals to many compared to Benefit-in-Kind tax rules on company cars.
👉 Related: Car Leasing FAQs
Why Company Cars Still Have Strong Support
It’s important not to overlook the 40% who voted for company cars. That’s a significant portion of professionals, and here’s why:
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Convenience & Peace of Mind
With a company car, employees don’t need to worry about depreciation, unexpected repair bills, or insurance renewals. Everything is handled by the employer. -
Professional Image
For client-facing roles, driving a branded or executive company car projects professionalism and consistency. -
Employee Retention
A fully maintained vehicle can be seen as a higher-value perk compared to a taxed cash allowance.
👉 Related: Best Time to Lease a Car
What This Means for Employers
So, how should businesses interpret these poll results?
- Flexibility is Key: Employees are leaning toward choice and autonomy. Providing a car allowance may be a more attractive benefit for modern workforces.
- One Size Doesn’t Fit All: Depending on the role, a company car may still be the smarter option. Sales teams or field workers benefit from reliability and employer-managed vehicles.
- Hybrid Policies Could Win: Some businesses are beginning to offer employees a choice—take a company car or opt for the equivalent allowance. This flexibility can improve satisfaction and recruitment.
👉 Related: Do I Need Insurance for a Leased Car?
The Bigger Picture: Shifting Work Perks in 2025
Beyond the poll numbers, the real story is how employee expectations are evolving:
- Sustainability is growing. With more electric and hybrid cars on the road, allowances may allow eco-conscious employees to choose green vehicles.
- Remote and hybrid work models mean not every employee needs a company car, reducing the appeal for some businesses.
- Cost control remains a priority for employers, and allowances provide predictable, fixed expenses.
This explains why the poll skewed toward car allowances—today’s workforce values choice, control, and cost-effectiveness.
Final Thoughts
Our LinkedIn poll revealed a clear preference: 60% in favor of car allowances versus 40% still supporting company cars. While not a landslide, the results underline a shift in priorities among employees and employers alike.
For businesses, the takeaway is simple: listen to your people. Offering flexibility—whether through a choice between the two or tailoring policies by role—could be the smartest way forward.
👉 Want to see how leasing fits into both models? Explore our company leasing solutions