Motus White Papers

5 Benefits of Transitioning from a Fleet Program to Vehicle Reimbursement

Issue link: https://resources.motus.com/i/992312

Contents of this Issue

Navigation

Page 0 of 2

1. Reduce Costs The costs for providing, maintaining, and administering a fleet go far beyond monthly lease payments or bank fees. In most instances, offering company-provided vehicles is significantly more expensive than offering the equivalent reimbursements through Motus. Clients who have transitioned to Motus from company-provided fleet vehicles report the greatest savings in the following areas: Administrative Cost Administering a fleet program requires a significant investment in time and human resources. In addition, many companies pay a third-party fleet provider to assist with the acquisition and administration of their fleet program. Personal Use Expense When providing an employee with access to a company-owned or leased vehicle, the employer is oen responsible for paying all costs associated with the personal use of that vehicle. Providing drivers with a fuel card or reimbursing them for submitted gas receipts will inadvertently result in the employer paying for 100% of the drivers' personal fuel. In this instance, there is virtually no way to distinguish between "business fuel" and "personal fuel." Additionally, because a vehicle depreciates and incurs maintenance costs with every mile driven, personal miles represent significant costs for employers. Motus vehicle reimbursement programs consider only the business use of each vehicle when calculating a fair, accurate, and defensible reimbursement rate. Maintenance Costs Studies show that drivers do not maintain a company-provided vehicle the same way they would maintain a personally owned vehicle, as it is not their asset to protect. Drivers recognize that if anything happens to their company-provided vehicle, their employer will either pay to have it fixed or will pay to replace it. Idle Vehicle/Disposal Costs When an employee leaves an organization, the company remains responsible for the fleet vehicle and all associated costs including lease payments, storage, and transportation. With Motus, the reimbursement begins when the employee is hired and ends when the employee terminates, thereby eliminating these costs and simplifying the transition process. 5 BENEFITS OF TRANSITIONING FROM A FLEET PROGRAM TO VEHICLE REIMBURSEMENT

Articles in this issue

Archives of this issue

view archives of Motus White Papers - 5 Benefits of Transitioning from a Fleet Program to Vehicle Reimbursement