Lease vs. Reimbursement/Allowance

May 13, 2019 | Fleet Management, Fleet 101

When fleet management 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, which 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.

Hiring Advantage

Providing a company vehicle gives your company a competitive edge in hiring top talent for your sales, tech, and managerial positions.

Increased Productivity

Properly maintained vehicles experience less downtime 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. 

About Union Leasing

At Union Leasing, we provide flexible fleet solutions for every stage of your Vehicle Management Lifecycle: Planning, Leasing, Fleet Operations, and Remarketing. It’s a holistic approach that ensures your business goals are achieved. But what really sets us apart is how we deliver. We treat every customer as if they were our first. We avoid off- the-shelf solutions, and instead work with you to tailor an approach that meets the needs of your clients and your business.

Find out how Union Leasing can go the extra mile for you. Contact us today

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We provide a range of customized fleet management solutions, industry-leading technology, and innovative products. Whether it is consultative planning or assisting the day to day, over 60 years of experience and industry expertise means we can always find more ways to save you time and money. But what makes us really stand out as an industry leader is the high-touch, personal service we provide to every single one of our clients. With a dedicated account team who knows your business inside and out, you can rest easy knowing everything will be done just the way it should be.




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