Establishing a corporate policy about personal use may save money. Of the companies that have established personal use policies, policy guidelines vary. Some companies limit personal use to within 150 miles of home, commuting to/from home and work sites, or employee use only. Other policy considerations may include accident liability, mandated motor-vehicle driving record checks, and providing proof of insurance. Enforcing policy can be aided utilizing a GPS tracking device.
To combat this rising cost, some companies deduct the charges from employees’ paychecks. How the expense to charge is calculated, like the policies, varies. The most common method is using industry-specific averages.
Another, more precise method, is to install a GPS tracking device in each vehicle. A fleet manager can monitor work vs. personal use in real-time. The reports generated can make reconciling more accurate and timely.
If your company does not yet have a personal use of company-owned vehicles policy in place, your business may be losing money.
Source: www.automotive-fleet.com/Channel/Fuel-Management/Article/Story/2012/07/Personal-Use-Charges-Hit-116-in-2012.aspx. Photo: Scott St. John