Although it may seem cost-effective to reimburse an employees for the use of their personal vehicle on company time, a commercial lease for company vehicles are more cost-effective.

Driver reimbursement is the most costly, least efficient way to finance business transportation. It offers the least amount of control over operating costs, safety and the condition of an employee’s vehicle. It also requires extensive record keeping and administrative time to process driver claims.

While reimbursement offers businesses no capital outlays, it presents many disadvantages to both the company and its employees. Drivers generally pay higher acquisition, maintenance and insurance costs, drive less fuel-efficient vehicles, have increased operating costs and down time and do not realize the tax benefits associated with leasing a vehicle.

Selig Leasing can provide you with a comprehensive lease vs. reimbursement analysis.  Please contact us for more information.