Reimbursing Employee Cars

Reimbursing employee cars will make sense for some companies, and no sense for others. Take a close look at your financial situation and goals, and only decide on reimbursing employee cars if it makes absolute sense.

Reimbursing Employee Cars - Crash Course In Major Finance

For your mobile business, there are two principal options:

  1. You can purchase a fleet of company cars and disperse driving responsibility on an individual basis,
  2. Or you can allow your employees to bring their own cars to the game, reimbursing them for their business use - or for the car outright.

Reimbursing employee cars is an effective way to manage and maintain mobility with little in the way of actual management. Its also extremely cash heavy, meaning you should only reimburse if you have the stomach, and the purse.

The real cost of reimbursing employee cars

Reimbursing employee cars can be a simple as paying an extra sum by the mile, or as complex as paying an actual lease, insurance, and all necessary maintenance. It really depends on the company and the level of travel needed for the mobile business aspect of your company.

On average, when companies reimburse their work force's use of employee cars, they are responsible for:

And thats a lot of money! In some instances it would actually be cheaper to focus on reimbursing employee cars and making the employee pay for all the little things.

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