Analysis carried out by KeeResources has suggested that employers should consider loosening the restrictions they place on the range of cars made available to staff.
The use of whole life costs (WLCs) is critical for businesses that are looking to save money on their company car expenditure, the research claims.
The sales and marketing director at KeeResources, Mark Fretwell, said: "As we all know, the company car is one of the most valuable, high profile and emotive employee benefits and a change to fleet policy based on WLC proves highly motivational."
In addition to saving on costs, adopting a WLC approach is also seen as an extra benefit by employees and helps to increase staff retention, it is believed. A revised reward package containing a greater choice of vehicles would be more attractive to prospective staff as well.
Mr Fretwell added: "Given the natural tendency for employees to maximise the benefit of their company car, it is likely that the 100 models with P11D values between £17,000 and £18,000 would prove most popular."
The costs incurred by the business would be between £630 and £858 per month, with a mean average of just under £720, the figures show.
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