Lease vs Reimbursement

Great Recommended article. Click on web link below!

Click here for article: Company Car Vs Car Allowance
Published in Bobit Media’s Jan. 2008.

Some of the major reasons reimbursement may not work are:

Wrong Company Image may be Projected:

With driver reimbursement, whether a vehicle is appropriate to the type of image the company wants to project is determined and controlled by the employee.

Employee Vehicles Increase Liability Exposure:

If a vehicle is not provided by the company, then the company must be certain that the driver has sufficient insurance to protect it from liability, should there be an accident while a driver is on company time.

Elimination of Hiring Advantage:

Providing a company vehicle gives your company a competitive edge in hiring top caliber salespeople, technicians, and managers.

Employee Productivity Decreases:

A business that does not provide a company vehicle has little or no control over the condition of an employee’s car. Poorly maintained vehicles experience more down time and repair expenses.

Costs are unfairly Shifted to Employees:

It is more expensive for employees to use personal vehicles for business than it is for a business to offer company vehicles. For instance, a company is able to acquire vehicles at wholesale, and qualify for fleet incentives that individuals are not eligible for.