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Car allowance program
Companies provide car allowances instead of company vehicles for the following reasons:
- Reduce administration costs
- Keep the capital costs off company books
- Easier monthly expense management
Challenges:
- No expert set of checks and balances in place
- Driver doesn't have volume purchasing power
- Driver not a professional buyer - only acquires a vehicle once every several years
- Driver may be "sold up" on higher class of vehicle than allowance affords
- As driver's costs rise, more frequent renegotiation of allowance will be required
Automall Network can help your drivers acquire a new or used vehicle at discount prices. As a Personal Vehicle Shopper, your drivers have a specialist at their disposal without the cost and overhead of a full time fleet manager. The savings we help them get on vehicle acquisition can offset fuel, insurance and operating costs. This enables your company to keep car allowances at current levels while letting your drivers keep more money in their pocket.
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