Definition: Company cars

Category: Labour market

Company cars are part of wages and salaries in kind and represent the cost to the enterprise of company cars supplied to employees for their private use. It should include the net running costs incurred by the enterprise (the annual cost of leasing or depreciation, insurance, maintenance and repairs, and parking).  It should not include the capital expenditure involved in purchasing the vehicles, any income derived from their resale, or the proportion of the costs attributable to work-related use. These estimates are based on information available in the enterprises, e.g. records of the fleet of vehicles of this type, the assessment of the average cost per vehicle, and the estimate of the proportion attributable to the private use of the vehicle by the employee.