[5][clarification needed] There are three main reasons which explain why the provision of a company car for private use as a benefit may be attractive for both the employee and the employer.
For example, business registrations account for roughly 50% of all car sales in the EU, largely due to taxation rules which give companies a strong incentive to provide the benefit.
[1] When issued by a government agency, concern has been brought up by citizens and advocates over taxpayer money used to fund take-home vehicles.
In Sacramento, California, the issuing of take-home vehicles has come under scrutiny as the city has faced a budget deficit.
[11] Baltimore's former mayor Sheila Dixon was also criticized for having three tax-funded take-home vehicles parked at her house.
[12] In Dallas, the city was having trouble obtaining data in attempting to determine the cost of take-home vehicles to taxpayers.