Auto allowance
January 16, 2009
Many companies don’t realize there is an alternative to leasing or giving your company vehicle to an employee. This is alternative is a auto allowance that has distinct advantages. Corporate Reimbursement Services, Inc. (CRS) estimates that on average, using this auto allowance saves an employer about $3000 per year.
How does the CRS program save 3000 dollars through their allowance? First it does it by reducing in administrative costs managing the fleet, usually through a 3rd party. Personal use expense savings because you no longer have to worry about a employer using your vehicle and running up gas and wear and tear for non-business associated trips. You’ll save with maintenance costs savings because most employees abuse the driving practices and maintenance because it is not their car. When it’s their own vehicle they take much better care of it. Idle vehicle and disposal costs are minimized because you don’t have to worry about it being turned in “upside down” in the lease, stored or transported to a different territory. Simply stop the auto allowance, once the employee is terminated. Finally, you save with capital expense because you don’t have to make large investments up front in buying vehicles. Instead you can use this money to be used for important crucial company equipment that allows the real part of your business to grow. I encourage you to check out the CRS website because it will help your company save tens of thousands, when you add up the savings of 3000 dollars per employee.
This post was brought to you by crsinc.com
