Search the site
PROPERTYlinks
Rentman letting software
Zoopla


Company cars? Who Needs ’em?

publication date: May 11, 2009
Download Print Send a summary of this page to someone via email.
Robert Scott-Lee, Managing Director, Chancellors
“Do agents need the use of a car at work? Yes. Should employers help facilitate that? Yes. Should employees have company cars? No. They are expensive and it’s detrimental to both the individual and company.
“In 2002, the Government stopped the reduction in the tax charge for high mileage and other benefits have been gradually eroded.

“As a company we used to run a fleet of cars but increasingly had staff members requesting to come out of the scheme so we looked for an alternative. For the last few years we have had no company cars and instead offer our staff a ‘car allowance’ as a contribution to the cost of running a car. Some would always argue that the provision of a car suits them better but this is not our experience. Business mileage can be claimed back at the individual’s taxable rate and the allowance ensures the individual can make personal decisions on the size, style and cc that they don’t have any choice about when a corporate car fleet arrangement has been entered into.

“For the business owner; consider the resources you can redistribute by not spending time maintaining the car fleet. There are better income opportunities in this current economic climate.”

Mark Cullen, Sales and Lettings Director, East London, Foxtons
“In London it’s essential estate agents have company cars. Applicants are happy to get the bus, tube or a taxi to the office but then expect to view properties with an agent in their car. Very rarely do people turn up at our offices in a car, or meet negotiators at properties and this is true for lettings too.

“We give our staff the appropriate tools to do their job. Some companies are using pooled cars but if applicants can’t get a suitable appointment for two or three days it’s frustrating for them and they will simply approach their competitors. There is no green issue here – agents who use car pooling think they are cutting costs but this is not the case. We’d miss out on a lot of business if we couldn’t take people to see our clients’ properties.

“People may not know London that well so there is little point in applicants bringing their own cars as they would not only need to navigate London’s streets but also find parking and pay congestion charges. It’s very useful to spend an hour or so with applicants in the car to provide useful information about the area and transport links. This is better than applicants having to find out for themselves out the nearest tube stations to a property, then locate the property itself and be on time for viewings. By taking them in a car, they know what time they have to be at our office and if they are running late we can call ahead.

“Company cars enable us to provide better service and take control. Branding is a secondary issue. Foxtons pioneered branded cars for estate agents but at the end of the day branding is not as significant as being able to show our clients’ properties and to be able to offer a first class level of service to applicants.”

Ronnie Green, Joint MD, Countrywide Lettings
“Personally I’d encourage negotiators to get around the metropolis on scooters – you can get there quicker and save a lot on parking, fuel, road tax and congestion charging. The problem is of course, you can’t take someone with you however you could easily take a taxi for tours – this saves the problem of finding a parking space and takes away the additional stress of locating properties too.
“A couple of years ago I planned to have a fleet of taxis for John D Wood and Faron Sutaria, which could be used in place of cars to ferry negotiators around. In the end we didn’t do it was because the driver would always be in the wrong place at the wrong time. The efficiencies in terms of cost and time savings were good, and we would have saved a lot on company cars and parking, but the logistics weren’t.
“Most people still see a company car as a perk and it would be difficult to change that expectation especially in the winter when it’s cold and dark.
“I run branches all over the UK and although in the country agents can easily park outside properties, in places like London, Manchester, Leeds and Birmingham traffic and parking issues are a real nightmare. I’m sure applicants get stressed in the car and when the negotiator driving them does eventually find parking they have to leave their applicant while they find change or call up to pay by ’phone. The whole thing is inefficient, especially in London.
“Foxtons pioneered branding with the Foxtons’ Minis but I’m not sure how great the branded car advert is. Negotiators, on the whole, prefer to drive unbranded cars as when they go out socially they don’t particularly want the world to know they drive a company car – not because they are estate agents but because it’s obviously a commercial vehicle.”


Andrew Dewar, Joint Senior Partner, Curchods
“If agents are operating outside London they need cars to conduct business but it’s essential that the cars reflect the company image – clearly you can’t show a million pound house in a clapped out Ford Anglia and rolling up in an Aston Martin with loud music playing would create the wrong impression.
“Green issues are coming to the fore day by day and the greener you are the more likely you are to please and appease people. From a business point of view many staff prefer to have their own car. In most cases it’s more tax efficient for employees and therefore we only have a quarter of the number of company cars as we did ten years ago. We do however impose restrictions on the type of cars they can purchase and we don’t allow them to conduct business in two-seaters or soft-topped vehicles.
“We’ve seen huge reductions in the number of people who are transported to and from properties in recent years because home-searchers no longer expect to meet a negotiator at the office in order to go on a viewing – they are more likely to search online and meet at the property. If applicants are on a tour however, it’s beneficial for the applicant and the negotiator to be in the car together so home-searchers can discuss their requirements and the local area.”

Peter Rollings, Marsh & Parsons
“Company cars are essential. Not only are they expected as part of the job, but they set a negotiator’s job apart.
“If you show a property that is unsuitable for whatever reason, proactive agents respond by returning to the office to get keys for a different property, taking their applicants there.

“A London competitor has gone down the ‘car sharing’ route but it’s madness; it’s like letting the accountant run the business and not the estate agent. Having a car frees up the lettings and sales processes enabling negotiators to do their jobs. In a tough market, we have looked at the alternatives but they were simply not feasible.”

Paul Masters, Director at Kinleigh Folkard & Hayward
“Estate agents need cars to visit clients’ properties and accompany buyers and tenants to viewings.
However, in London there are many occasions when our people can walk to appointments, which can overcome problems with parking and also reduce use of cars generally.

“A company car is very much a tool for the job and is considered to be the norm within the industry. Staff at certain levels within KFH have the option of a car allowance but in the main most people will take the company car.
“We replace our cars every three years and it is noticeable that manufacturers are continually improving fuel efficiency and reducing CO2 emissions with each new model they produce.”

Susan Fitz-Gibbon, Partner, Fitz-Gibbon
“Negotiators could easily ride on scooters in London but naturally this would cause problems in the countryside. Fundamentally we need to be realistic and smaller cars are something agents could consider regardless of geographical location. Smaller cars will not only limit CO2 emissions but reduce fuel costs and company car tax. This route also ensures agents continue to be mindful of the security issues if staff met prospective tenants at properties as a matter of course.

“Agents need to look at the bigger picture and consider where their offices are based and what service they are offering. On the whole, applicants expect to be driven to viewings and this is a crucial part of offering a good service. Agents are not just taxi drivers but have a wealth of knowledge and experience, much of which is communicated en route. Time spent in the car is invaluable in getting to know your applicant, better understanding their needs and talking about local amenities to give the highest possible level of service.







NEW ISSUE!
PROPERTYdrum Magazine January 2012

iam-sold
DPG - Sneak a peek!
Homelet Insurance
LetMC lettings software
Let Insurance Services