Fleet Company Car Costs
Maximize your employees’ mobility and minimize fleet costs with personal-owned vehicle reimbursements. Consider offering tax-free car allowances instead of company cars.
Trim Expenses: Trim the Fleet
Reduce costs
Cut through the overhead of fleet management including acquisition, fuel, insurance, taxes, and maintenance.
Minimize financial waste
Discover that only 70% of fleet management costs serve business purposes, and optimize spending.
Save time
Free up valuable resources by shifting away from the time-consuming administrative tasks of fleet management.
Fleet costs are challenging to compute
Understanding the real costs of operating a company-owned fleet of vehicles is hard to do. There are lots of elements to consider, including quite a few hidden costs. But one thing is for certain and understood industry-wide: fleet management and fleet vehicles are the most expensive vehicle programs out there!
How fleet costs compare to a reimbursement program?
The approximate cost of a leased fleet for fifty vehicles is $780,000 per year compared to the approximate cost of a mileage reimbursement program for fifty vehicles is $390,000 per year.
That’s a 50% cost savings!
Why are Vehicle Reimbursement Programs (VRPs) so much cheaper?
With VRPs there are no personal use discrepancies so companies only pay for the business use percentage, often 71.4% of a vehicle’s total mileage.
There are no mileage band discrepancies, so you won’t find yourself paying a rate that includes employees’ personal use of the vehicle. Plus, VRPs free you from paying vehicle insurance and the hidden and often overlooked reconditioning and transfer costs–fees associated with detailing and transferring the vehicle from one employee to another.
Make the move away from company owned and operated fleet vehicles—either partially or fully—and save the time and money.
True costs of company cars
Transitioning to a Vehicle Reimbursement Program (VRP) like Cardata’s FAVR mitigates risks associated with fleet operations.
- Liability for accidents and injuries.
- Escalating insurance premiums and legal fees.
- Unauthorized or improper vehicle usage.
- Neglect leading to safety hazards.
Outsourcing fleet management minimizes administrative burdens, but at what cost?
Fleet companies may advertise a charged rate of $0.50 per mile for, say, 20,000 miles per year. However, this rate doesn’t consider personal use, so the actual cost to the business could end up being higher, closer to around $0.70 per mile, making it more expensive than it initially seems.
- Fleet has a high business use percentage, often billed as if the BUP was 100%.
- Reimbursement programs like FAVR have a BUP of 71.4%.
- When your employees bring their personal vehicles to work, they are reimbursed for business use only.
- Fleet vehicle chargeback policies vary due to industry-wide lack of standardization.
- Employees often underreport personal car usage, leading to a tax burden nearly 30% higher than necessary.
- FAVR eliminates this problem because employees are using their personal vehicles.
Ready when you are
Book a DemoMore reasons to modernize
Let Cardata guide your company through the transition away from traditional fleet management, empowering your company to thrive in a rapidly evolving market.