Lease vs. Reimbursement / Allowance
When companies are trying to cut expenses, a comparison of company-provided vehicles vs. reimbursement or allowance plans will be reviewed. After thorough analysis, most companies will find that leasing is less expensive and alleviates much of the vehicle ownership and maintenance burden from employees.
Other important advantages of fleet leasing include:
Positive Company Image
When you select the makes, models, and features of vehicles, you can also choose a comprehensive maintenance program that keeps them in full repair and top working condition, this reflects positively on your company. With driver reimbursement/allowance plans, whether a vehicle and its condition are appropriate to the type of image the company wants to project is determined and controlled by the employee.
Decreased Liability Exposure
When you provide and insure vehicles, you can be certain drivers have sufficient insurance to defend against liability issues in the event of an accident on company time.
Providing a company vehicle gives your company a competitive edge in hiring top talent for your sales, tech, and managerial positions.
Properly maintained vehicles experience less down time and incur fewer repair expenses. A business that does not provide a company vehicle has little or no control over the condition of an employee’s car.
Volume Savings Benefit Employees and Company
Put simply, it is less expensive for a business to offer company vehicles than it is for employees to use personal vehicles for business. A company is able to acquire vehicles at wholesale and benefit from fleet incentives for which individuals are not eligible.
One of our fleet leasing and management experts will help you realize all these advantages and many more.