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The Independent UK
The Independent UK
Steve Fowler

Government crackdown on car industry perk could drive up used car prices

Used car prices could rise due to fewer company cars being registered by car companies and retailers - (PA Archive)

If you work for a supermarket, you and a family member can get discounts on your shopping. If you work for an airline, you and your family members, friends can benefit from free or cheap flights. And if you work for a car company, you might get the chance to take part in an Employee Car Ownership Scheme (ECOS), allowing you and your family to run a brand-new car at a cut-down price.

Company perks are a big part of employment, making it easier to attract and retain staff. But the government is targeting car company (and car retailer) workers, proposing to charge them the full rate of company car tax on the cars they run, which could have a knock-on effect for people looking to buy used cars, as well as causing employment problems.

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