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Companies see drop in car mileages

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There has been a fall in company car mileages as firms strive to reduce costs, according to new figures.

The figures, from Aston Barclay, show that at the peak of the recession, car mileage went down by as much as 20%.

The report, which took into account more than 45,000 ex-fleet cars during a three-year-period, found that many firms were reluctant to buy new vehicles and had chosen instead to extend contracts. The average age of former fleet stocks went up to 60 months last year as a result.

Fleet mileages also went down on average to 11,349 last year from 13,746 miles in 2008 after employees were urged to use fuel economically. Workers also came under pressure to save costs as greater miles add to extra car insurance spending.

Tim Hudson, managing director, Aston Barclay, said: "Our data clearly shows the increase in contract extensions in 2009, but average mileages went in the opposite direction in the same year.

"One key reason could be that employers have been more focussed on both reducing cost and improving efficiencies in the recession, which has ultimately impacted on company car use and average mileages. Generally employees will have also been covering fewer private miles as their fuel costs continued to rise above the rate of inflation."

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