Motus White Papers

Leveraging Technology to Transform Your Fleet Program

Issue link: https://resources.motus.com/i/992321

Contents of this Issue

Navigation

Page 0 of 1

LEVERAGING TECHNOLOGY TO TRANSFORM YOUR FLEET PROGRAM SELF-REPORTED VS. AUTOMATED MILEAGE CAPTURE According to an annual Automo ve Fleet survey, average monthly personal use charges recovered from mobile employees are steadily increasing. From $103 per month in 2008 to $139 per month in 2019, this amount is only expected to grow. But, according to Motus, the average cost of personal use is actually es mated to be more than $230 per month per vehicle – which means companies may be losing as much as $2,800 per vehicle each year in foregone chargebacks. Companies find it challenging to administer accurate personal use chargebacks because most employees don't maintain detailed mileage logs throughout the year as required by the IRS. Instead of detailing each trip, many mobile employees es mate their mileage at the end of the year, which o en results in under-reported personal mileage. On top of that, many employees don't have a good understanding of what cons tutes a business mile versus a personal mile, as IRS commute defini ons of "home office," "regular office," and "no office" can be confusing. When employees don't understand commute regula ons, the result is almost always under-reported personal mileage. Motus has found personal use is o en 2X or more what is being self- reported: In one case, a company's mobile employees claimed personal use of 20%, but automated mileage capture revealed it to be over 40%. Advancements in technology have transformed the workplace over the past decade and have had a significant impact on the way fleet programs are managed. But, collec ng mileage logs and repor ng personal use of company vehicles to the IRS can s ll be an administra ve burden. As a result, many organiza ons with fleet vehicles opt-out of administering personal use chargebacks and the hassle that comes with it. Those that apply personal use chargebacks o en choose arbitrary amounts based on personal use es mates or industry benchmarks. While simple, this means that many companies lose money due to under-charging employees with high personal use. Employees with low personal use are over-charged and feel unfairly burdened – hur ng employee morale. Armed with the right solu on, organiza ons can gain visibility into actual personal use, accurately capture personal-use mileage, stay compliant and appropriately realign their fleet programs. Self Reported Auto Calculated & Loca on Verified 25% 75% 45% 55% Business Non-business "The Motus Index" reflects data across 104,225 Motus drivers for the trailing 24 months. Analysis proves that clients who transi on from self-reported mileage to automated GPS mileage capture realize an average of 20% savings in overall costs.

Articles in this issue

Archives of this issue

view archives of Motus White Papers - Leveraging Technology to Transform Your Fleet Program