Across North America

Fleet Tracking Solutions

Trend Away from Fleet Management

There once was a time when many companies sought fleet programs as a solution for employee travel. In the absence of alternatives, this was an understandable decision. Fast forward to present day – many vehicle program options exist: fleet, cents-per-mile, hybrid fixed and variable; and business economics are dictating fiscal prudence.

Is there still a place for a Company Car fleet? Definitely there is – with service vehicles, often branded with the company logo. For other applications the trend is away from fleet to VRPs, IRS compliant reimbursement plans. With a managed VRP at CarData, companies will see a reduction in overall program spend, and decrease the risk of liability. These benefits are accomplished with CarData’s “best in class” corporate reimbursement solutions.  Our nontaxable vehicle reimbursement programs keep employees in their own cars, meaning, you only pay for expenses related to the job.

A company owned/leased fleet is the most expensive of all business vehicle programs, as the employer pays for both business and personal driving. That includes title, license, insurance, and accidents. Additionally, drivers are assessed a taxable benefit for the personal use of the vehicle. Comparatively, a VRP mitigates the corporate liability occurring when the company vehicle is used for personal travel or is being operated by someone other than the employee. Further benefits accrue from the reduction in administration that comes from a well-managed business vehicle reimbursement program. With CarData as the administrator for a managed VRP clients can expect platinum service for tasks such as:

  • Communicating with drivers
  • Enforcing the vehicle policy
  • Handling driver calls and emails
  • Insurance & driver license administration
  • Report Management

Over the last decade there has been a trend toward managed VRP’s; turning away from costly fleet programs in favor of vehicle reimbursement. Vehicle Reimbursement Programs offer a more efficient, cost-effective way to keep employees on the road when required by their job. A managed VRP allows businesses to maximize budgets and employee resources, while providing a defensible IRS compliant program, based on regionally accurate data and fair reimbursements.

To learn more, contact us at 1-866-550-5188 or email info@cardataconsultants.com.

What Our Clients Are Saying

At first, we were reluctant to move away from fleet management. We saw it as an integral part of our corporate culture and also thought of it as recruitment leverage. Unfortunately, after one of our vehicles was involved in a DUI it became clear that the program was simply too risky to maintain. CFO, Oil & Gas Business

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Are employees being overpaid and underpaid with the government rate?

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