More company cars bought last year than ever before

Summary

Companies are not giving up on the idea of offering cars as part of a salary package, despite discussion that related fiscal benefits should be eliminated

Vroom, vroom

Despite city, regional and federal government measures being taken to limit CO2 emissions in the coming years, company cars in Belgium have never been more popular. Last year, a record 315,557 new cars were bought by businesses in the country, according to auto federation Febiac and reported in De Tijd.

That figure is 22,000 more than in 2018, for an increase of 7%. A full 57% of all new car registrations in Belgium are by companies. Compared to five years ago, company car registrations have increased by one-third.

Cars continue to be a popular choice in salary packages offered by employers. Even if an employer offers mobility alternatives in a package, such as an annual train pass, new employees tend to choose a company car.

Extenuating factors

“The economy continues to be strong,” Karl Schuybroek of Renault told De Tijd, “so companies are renewing their fleets. They are buying different cars, but not fewer.”

There are a couple of factors that have had an influence on the figures. The leasing companies note that many cars ordered in 2018 only arrived last year because of a delay in the approval of new car models due to the new European emissions test. Also cars that no longer met European emissions norms that were sitting in dealerships had to be registered as company cars before being sold as second-hand cars.

Febiac figures also showed that, while there are many more registrations for company cars, fewer individuals are buying new cars. Some of them are of course receiving company cars, while others appear to be putting off purchases, concerned about low-emission zones and the ban on diesel.

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