The High Cost of Fleet Management

A company owned/leased fleet is the most expensive of all business vehicle programs, as the employer pays for both business and personal driving. While many corporations may view fleet management as a more traditional way to maintain a mobile workforce or as a desirable employee recruiting tool, the reality is that the expense can greatly outweigh the benefits. Maintaining a fleet of vehicles can not only become a considerable financial drain, but the high cost of fleet management can also be felt in other areas. Specifically, exposure to liability and the drain on internal resources can also be looked at as a cost.

Financial Costs

The financial costs associated with managing a fleet go beyond simply purchasing the vehicle and making monthly payments. The financial expenses for maintaining a company car also include depreciation, licensing, insurance, maintenance, accidents and fuel. Additionally, in most cases, these expenses are not merely work related, since employees are allowed to go home with the vehicle. Household errands, weekend getaways and general driving around in a company-owned vehicle can contribute significantly to maintenance needs and fueling costs.

Additionally, drivers are assessed a taxable benefit for the personal use of the vehicle.


Though it may not be an immediate financial expense, the exposure to liability can certainly be considered one of the costs associated with managing a fleet of company cars. A fleet vehicle becomes your employee’s daily driver, and possibly the vehicle that is also driven by a spouse or even an inexperienced young driver. If any of these drivers were to be involved in an accident or become the victim of theft, whether on company time or otherwise it is the company that would be held liable. Even with robust preventative maintenance programs and strict fleet policies in place, there will still be a high liability risk involved with managing a fleet of vehicles.


Managing and maintaining a fleet of company vehicles can be considerably time consuming. In fact, depending upon the size of your fleet it can become a fulltime job or at the very least one that takes up the bulk of an employee’s time. This means having to pay a salary or reducing an employee’s efficiencies in other more valuable areas.

Opting for a vehicle reimbursement plan rather than a fleet management program eliminates all of these expenses. If you would like to learn more about these and other related benefits, please visit our learning center at or contact CarData by phone at 1-866-550-5188 or via email to