The costs for providing, maintaining, and administering a company-owned or leased car program go far beyond monthly lease payments or bank fees. In most instances, offering company-provided cars is significantly more expensive than offering the equivalent reimbursements through Motus.
Our clients save nearly $3,000 per employee per year, on average, when reimbursing for the same vehicle they had been providing. Clients who have transitioned to Motus’ fixed and variable rate (FAVR) reimbursement program from company-provided fleet vehicles report the greatest savings in the following areas:
If you are currently providing fleet vehicles, you may be 100% liable for any incident involving a company-provided vehicle, regardless of the time of day or whether the vehicle was being used for business purposes. There is typically no legal distinction between “business” and “non-business” use in the case of an accident involving liability claims. A properly designed vehicle reimbursement program will significantly mitigate liability and risk exposure.
Are your drivers satisfied with the vehicle options available to them? Many companies find their employees prefer a program with greater flexibility and choice, one that allows them to select a vehicle that both satisfies their personal preferences and complies with company policy.
Transitioning from a company-provided fleet program to a vehicle reimbursement program can be a significant, emotional, and fundamental change to your organization. The success of the reimbursement program is often dependent upon the success of the transition experience.