A total of 120 fleets operating more than 106,000 passenger cars participated in the dual survey.

According to the survey, 114 of 120 fleets permit personal use of the company car. Only nine fleets place any limitation on the personal use privilege-primarily on vacation travel.

Ninety-seven fleets charge their employees for personal use; 17 do not. The most common method used for charging personal use is by straight mileage-handled this way by 70 fleets. The others that charge have either a fixed monthly or weekly rate or used a combination of a fixed and a personal mileage charge.

The most frequently cited personal mileage charge is four cents a mile-the rate assessed by 29 fleets. Ten fleets charge three and a half cents a mile, while eight charge five cents.

The expense report deduction is the most often used method of collecting for personal mileage-by 63 of the reporting fleets. Only 13 fleets said they used salary deductions to pay for personal use.

Of the 114 fleets permitting personal use, 102 extend this privilege to the spouse of the company employee; 61 allow licensed children to drive the company car, and 13 extend the driving privilege to "others," usually specified as members of the employee's immediate household.

Of the 114 fleets permitting personal use, 41 said they charged the employee a portion of repair costs resulting from accidents during personal use. The majority assessed him a dollar amount, in many cases either $50 or $100 to cover the deductible portion of the insurance.

A higher number-59 fleets-said they "charged" the operator with an accident if another person was driving the company car assigned to him.

 

BUSINESS USE OF PERSONAL CAR

The survey indicates that at one time or another practically every organization-including government fleets-has a need to use the employee's personally owned car.

This business use of the personal car is divided into two areas: 1) when the employee has no assigned fleet vehicle but must use a car occasionally, and 2) when the assigned fleet car is not in operation.

When no fleet car is assigned, 89 fleets report they reimburse the employee for use of his personal car on a mileage basis. Twenty fleets said they use a fixed rate or combined a flat allowance with mileage. A number of fleets specified using "Runzheimer schedules."

For the fleets paying a mileage fee when no fleet car was assigned, 10 cents a mile was the most frequently paid rate-by 30 fleets. Twenty-two fleets pay nine cents a mile; nine pay eight cents a mile. The highest rate mentioned for business use of an employee's personal car was 14 cents a mile.

When the fleet car is not in operation, almost all fleets reimburse the operator for use of his personal car on a mileage basis. In this case, 10 cents a mile was by far the most often mentioned payment-by 50 fleets. Twenty-five fleets said they pay nine cents a mile; 16 pay eight cents a mile, while three pay 11 cents, and three others pay 12 cents a mile.

 

DRUG & COSMETIC GROUP

Sixteen drug and cosmetic fleets operating 13,606 vehicles (1,000 company owned cars, 12,373 finance lease vehicles, and 233 employee owned cars) participated in the survey.

Every fleet in the group permits personal use after working hours, on weekends and holidays, and on vacations. Ten fleets said "cost of gas included" in vacation use.

No fleet in the group places any limitation on the number of personal miles driven by the company car operator. Estimates of personal use ranged from five per cent to 33 per cent of total mileage. The fleet administrator reporting five per cent personal use commented, "Reporting is spotty, we are considering a fixed monthly charge."

Every fleet in the drug and cosmetic group charges for personal use. Twelve of the fleets make a personal mileage charge; three have a fixed monthly charge, and one uses a combination of both. Of the fleets making a personal mileage charge, six charge four cents a mile; four charge three and a half cents; one each charge three cents, four and a half cents, and five cents a mile.

Every fleet in the group extends personal use privileges to the spouse as well as the assigned car operator. Fourteen extend personal use permission to licensed children, and three permit "others" to drive the fleet car.

Six of the fleets charge a portion of repair costs resulting from accidents during personal use to the operator. One charges the full amount; the other five have a fixed dollar charge of $25 or $50. Ten of the fleets "charge" the operator with an accident if another person was driving the company car assigned to him.

Among those fleets in the group that establish a minimum total of business miles before assigning a fleet car to an employee, the required mileage ranges from 500 a month to 15,000 a year. The majority of fleets have set 10,000 business miles a year as the level for assignment of a company car.

Reimbursement policies for personal cars used regularly for business where no fleet car is assigned are evenly divided. Six fleets pay for mileage only; one pays a fixed monthly amount, while five pay a fixed amount plus mileage.

Of those paying mileage only, three fleets pay 10 cents a mile; one pays nine cents; one pays seven cents, and one pays 11 cents. Two of the fleets paying a fixed amount plus mileage specified they use "Runzheimer schedules." One pays three and a half cents a mile plus $57 a month; one pays three and a half cents a mile plus $19.50 a week, and one fleet pays four and a half cents a mile plus $80 a month. The fleet with a fixed payment pays $75 a month.

Reimbursement policies in the group for use of personal cars when the assigned fleet car is not in operation is based exclusively on mileage only. Nine fleets pay 10 cents a mile; three fleets pay nine cents a mile; one fleet pays 11 cents, and one pays eight cents a mile.

INSURANCE GROUP

Twenty insurance company fleets participated in NAFA's personal use survey. They operate 20,539 passenger cars; 11,635 company owned; 8,864 finance lease, and 40 employee owned cars.

Every fleet in the group permits employees personal use of the company car after working hours, on weekends and holidays, and on vacations. Five of the fleets place limits on the number of personal miles driven. In one case, it is for trips over 1,000 miles. In another it is 500 miles a month except on vacations. A third company permits personal use only within the employee's assigned territory.

While the majority of insurance fleets estimate personal mileage at about 10 per cent of all miles driven, some fleet administrators say the personal use is as little as three per cent, while others say it is as high as 24 per cent of all miles driven.

Seventeen of the 20 fleets charge for personal use; three don't. Of the fleets charging for personal use, 14 make a personal mileage charge; one has a flat weekly charge, and two use a combination of mileage and fixed charge.

The fixed mileage charge ranges from three to six cents a mile; six fleets charge four cents a mile; three charge five cents; one charges six cents; two charge three cents, and one charges three and a half cents a mile. The weekly charge is $3.75. The fleets using both methods charge $5 a month and four and a half cents a mile.

Fourteen of the fleets collect for personal use by expense report deduction; one uses a salary deduction, and two rely on personal checks from the car operator.

Nineteen of the 20 fleets in the group permit the company car to be driven by the employee's spouse; seven permit licensed children to drive the car, and two extend the use to others in the employee's household.

Only three of the fleets make the operator pay any portion of the repair costs resulting from accident during personal use. On the other hand, 12 fleets "charge" the operator with an accident if another person was driving the company car assigned to him.

In response to the question, "What is the minimum business mileage required before a company car is assigned to an employee?" five fleets said 10,000 miles. Others were as low as 500 miles a month, while 15,000 was the highest in the group. Several fleet administrators said mileage driven was not a factor; they used a time basis to determine the need for a car.

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In the insurance group, when an employee has no assigned car but had to use his personal car for business, the standard method of reimbursement was for mileage only. One fleet pays seven cents a mile; four pay eight cents; nine pay nine cents; seven pay 10 cents; one fleet pays 12 cents, and one fleet pays 14 cents a mile.

For use of the employee's car when the assigned fleet car is not in operation, the insurance fleets again reimburse on a mileage only basis. One fleet pays seven cents a mile; five pay eight cents; four pay nine cents; seven pay 10 cents; one pays 12 cents, and one pays 14 cents a mile.

 

FOOD & BEVERAGE GROUP

There are 21 fleets in the Food & Beverage Groups. These fleets consist of 12,300 passenger cars; 9,444 company owned; 1,323 finance lease cars; 325 maintenance lease vehicles, and 208 net lease cars.

Every fleet in the group permits personal use of company cars after working hours, on weekends and vacations. One of the fleets does not permit the company car to be used on vacations. Fourteen of the fleets say "cost of gas included" for vacation use.

Only two of the fleets place a limit on the number of personal miles driven by their employees. One fleet has a limit of 100 miles a week; the other, 2,500 miles a year.

Estimates of personal use in this group range from a low of one per cent to a high of 20 per cent of all miles driven. Most fleet administrators believe personal use is 10 per cent of total mileage.

Seventeen of the 21 fleets in the group charge for personal use. Of them, 14 levy a personal mileage charge; three have a flat monthly or weekly charge. Six fleets charge four cents a mile; others range from a low of two cents to a high of six cents a mile. Fixed charges are $4 a week; $23 a month, and $5 a month.

Of the fleets charging for personal use, 12 collect by an expense report deduction; two have salary deductions, and two ask the employee to send his personal check.

In the group, 18 fleets extend the personal use privilege to the employee's spouse, and six permit licensed children to drive. One fleet extends personal use privileges to "others."

Six of the fleets in the group charge some portion of repair costs resulting from accident during personal use to the operator. In most cases it is a dollar amount. In all 11 fleets the operator is "charged" with an accident if another person was driving the company car.

Fleets in the food and beverage group that base assignment of a company car on mileage say the minimum business usage ranges from 10,000 to 18,000 miles a year.

When an employee has no assigned fleet car and uses his personal car for business, all except one fleet in the group reimburse him for mileage only. Two fleets pay eight cents a mile; four pay nine cents a mile; and seven pay 10 cents a mile. One fleet uses a fixed amount plus mileage-$80 a month plus five cents a mile.

In those instances when a fleet car is not in operation and the use of a personal car is required, every fleet in the group reimburses on a mileage only basis. Four fleets pay eight cents a mile; three pay nine cents a mile; 13 pay 10 cents a mile, and one pays 12 cents.

 

MANUFACTURING & SERVICE GROUP

In the large manufacturing and service group, 43 fleets took part in NAFA's personal use survey. These fleets operate 40,023 passenger cars (11,486 company owned; 20,436 on finance lease; 2,701 on maintenance lease; 270 on net lease, and 5,130 employee owned).

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Forty-one of the 43 fleets responding permit personal use of the company car after working hours and on weekends and holidays; 40 permit personal use on vacations (24 say "cost of gas included" in vacation use).

Only one of the 41 fleets permitting use of company cars places a limit on such personal use-2,500 miles on vacations.

Thirty-five fleets charge for personal use of company cars. Of those specifying the amount charged, 21 have a personal mileage charge; 11 have a fixed monthly or weekly charge, and two use a combination of both methods. Seven fleets charge four cents a mile; six charge three and a half cents a mile; three charge five cents; two charge two and a half cents, while one fleet charges one and a half cents for all personal miles above 6,000 a year.

No two of the companies with a fixed rate levy the same charge. The rates range from $6 a month plus gas to $21 to $30 a month, depending on type of car assigned, in another fleet. One fleet charges $18 a month for personal use and raises it to $25 if the car is air conditioned.

Several fleets making a flat monthly charge for personal use add a mileage charge when the company car is used for vacations. One such fleet charges $24 a month and four cents for each mile over 600 miles.

Twenty-seven fleets in the group collect for personal mileage by expense report deductions; eight fleets use salary deductions.

In 39 of the fleets, the spouse is permitted to drive the company car. Twenty-six permit licensed children to drive and the privilege of using the company car is extended to "others" by six fleets.

Twenty-one fleets charge a portion of repair costs resulting from accidents during personal use to the operator. A few fleets charge the entire repair cost. Most of them charge either $50 or $100. One fleet requires the operator to pay for repair damage if he has been involved in two chargeable accidents in a 12 month period. Another fleet requires the operator to pay the first $100 for his second accident or the first when his wife or children were driving.

In fleets that use mileage to determine eligibility for a company car, the most common requirement is to drive at least 10,000 business miles a year, although some fleets require 20,000 business miles.

When a personal car is regularly used for business (no assigned fleet car), 29 fleets reimburse the operator on a mileage only basis. One uses a fixed amount-$90 a month-while seven use a fixed sum plus mileage. Five fleet administrators said they use "Runzheimer schedules." Others had varying plans-3.7 cents a mile plus $71 a month less a personal mileage charge; 10 cents a mile plus $35 a month. One fleet offers its employees a choice-$165 a month or nine cents a mile.

Of the 29 fleets reimbursing on a mileage charge, 13 paid 10 cents a mile; six paid nine cents a mile; two paid eight-cents, two paid eight and a half cents, while 10/4, 11, and 12 cents a mile were each paid by one fleet. Three fleets used a sliding scale of payments. One paid 10 cents for the first 150 miles, then five cents a mile. Another fleet paid 10 cents a mile when the driver was more than 50 miles from his headquarters city and five cents a mile when he was within a 50 mile range.

When a personal car is used occasionally or when the assigned fleet car is not in operation, practically every fleet in the group used mileage only as the basis for reimbursement. One fleet paid the employee $90 a month, while another paid a fixed sum plus mileage.

Of the fleets paying mileage only, 17 pay 10 cents a mile; eight pay nine cents a mile; five pay eight cents; two pay eight and a half cents a mile. Twelve cents, 11 cents, 1 OK, nine and a half, and seven cents a mile are each paid by one fleet.

 

CHEMICAL & PETROLEUM GROUP

Thirteen Chemical & Petroleum fleets operating 13,089 passenger cars participated in the personal use survey. These fleets consisted of 5,198 company owned cars; 6,470 finance lease vehicles; 764 maintenance lease cars; 900 net lease vehicles, and 561 employee owned cars.

Twelve of the 13 fleets permit personal use. The 12 fleets that sanction personal use allow it after working hours and on weekends and holidays. One of the 12 does not permit its cars to be used for vacations. Of the 11 that allowed use of the car on vacations, six said "cost of gas is included."

Eleven of the 12 fleets permitting personal use said they place no limit on the number of personal miles driven by employees. Estimates on the amount of personal miles driven by employees ranged from two to 21 per cent of total annual mileage.

Ten of the 12 fleets permitting personal use charged their employees for this use. Seven had a personal mileage charge and three had a fixed monthly charge. Four fleets charged four cents a mile; two charged five cents a mile, and one charged three cents a mile for personal use.

The monthly charges were $15 (two fleets) and $18.50. Nine of the fleets collected for personal use by expense report deduction; one used a salary deduction.

Nine of the fleets permitting personal use extended the privilege to the spouse of their employee; seven allowed licensed children to drive the company car, and one extended personal use to "others" living in the household.

Four of the fleets expect the operator to pay a portion of repair costs resulting from accidents during personal use; eight did not. Seven fleets "charged" the operator with an accident if another person was driving the company car.

The minimum business mileage required before assignment of a fleet car in the Chemical & Petroleum group ranged from 800 miles a month to 17,000 miles a year.

Reimbursement policies for use of a personal car vary in the group. When there was no fleet car assigned, eight fleets paid mileage only. The mileage payment ranged from eight and a half cents to 10 cents a mile, while two fleets paid on a descending scale depending on the number of miles driven. One fleet paid a fixed amount-$100 a month-for use of an employee's car for business when he was not assigned a company car.

When use of the employee's car was required during a period when the company car was not in operation, all fleets in the group reimburse on a mileage only basis. The payments ranged from eight and a half cents to 10 cents a mile, with five fleets paying nine cents a mile; four paying 10 cents a mile; one paying on a descending scale based on miles driven, and one fleet paying eight and a half cents a mile.

 

PUBLIC UTILITY GROUP

Seven public utility firms operating 6,303 passenger cars (5,725 company owned and 578 on finance leases) responded to NAFA's personal use survey.

Four of the seven fleets permit personal use of the company car. Only one allows the company assigned vehicle to be used on vacations.

The fleets that allow personal use estimate it to be between two and 10 per cent of the total annual mileage.

None of the fleets allowing personal use place limits on the number of miles that can be driven after working hours and on weekends and holidays. Two of the four charge the employee for personal use; two do not. One fleet charges five cents a mile; the other six cents. One fleet collects for personal use through an expense report deduction, the other asks the employee to pay with a personal check.

One of the four fleets permitting personal use extends the privilege to spouses and children; the others restrict use of the vehicle to the employee.

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When an employee uses his personal car for business (no assigned fleet vehicle), six fleets reimburse him for mileage only. Two fleets pay nine cents a mile; one pays eight cents; another pays 11 cents, and two have descending payment scales. One pays 10 cents a mile for the first 300 miles and eight cents for each additional mile. The other fleet pays 10 cents a mile for the first 1,000 miles and seven and a half cents for each additional mile.

The same scale for reimbursement is used by each public utility fleet when an employee uses his personal car because the assigned fleet car is not in operation.

 

GOVERNMENT GROUP

Eight government agencies operating 26,292 passenger cars responded to NAFA's personal use survey. Not one of these fleets permit personal use of the government owned vehicle.

However, five of the eight fleets did authorize use of the employee's personally owned car when the fleet car was not in operation.

When a government employee who is not assigned a fleet car has to use his personal car for business, he is reimbursed on a mileage basis by five fleets. One fleet pays a fixed amount-$50.00 a month.

One government fleet pays eight cents a mile for business use of the personally owned car; one pays nine cents a mile; two pay 10 cents a mile, and one has a descending scale that jays 10 cents a mile for the first 1,000 miles and five and a half cents for each additional mile.

When use of a personally owned car is required because the assigned fleet car is not in operation (and a pool car is not available), all government agencies participating in the survey pay mileage only. One fleet pays eight cents a mile; one pays nine; three pay 10 cents a mile, and one has a descending scale of 10 cents a mile for the first 1,000 miles and five and a half cents for each additional mile.

 

CANADA

Eleven Canadian fleets participated in the personal use survey. They operate 8,649 passenger cars (6,665 company owned, 1,084 on finance lease, and 900 on net lease).

Only one (a public utility) of the 11 fleets does not permit personal use of the company car after working hours, on weekends and holidays, and on vacations. Eight fleets said "cost of gas included" on vacation use.

Every fleet charged its employees for personal use. Five had a personal mileage charge; four had a fixed monthly or weekly charge, and one uses a combination of both.

Of the fleets with a fixed monthly charge; one set it at $23; another at $25. Two fleets charged fixed rates ($15 and $20 a month) plus the gas used on vacations only. The fleet with a combination charged $25 a month plus two and a half cents a mile.

Seven of the fleets collected for personal use through expense report deductions; two used a salary deduction, while one fleet that levied a fixed monthly charge plus a mileage charge asks its employees to send in a personal check when the combination of charges does not cover personal mileage at the end of each month.

All fleets in the group permit the spouse of company employees to drive the car and seven permit licensed children to use the company car. None extend the driving privilege to "others."

The Canadian fleets are much stricter about personal use than United States fleets in one respect: Eight of the 10 fleets expect the operator to pay a portion of the repair costs-usually $100-resulting from personal use accidents. Nine of the 10 "charge" the operator with an accident if another person was driving the company car assigned to him.

Most fleets in the group require an employee to drive 10,000 business miles a year before assigning a company car to him.

The reimbursement policies for use of a personal car (when no fleet car is assigned) are generally based on mileage but vary widely in amount. One fleet pays "50 cents per five miles or portion thereof." One has a descending scale of 13/11/9 cents a mile; another pays 14 cents for the first 500 miles and 12 cents for each additional mile. Another fleet pays 14 cents for the first 4,000 miles and nine cents for the next 6,000 miles (after 10,000 miles the employee is assigned a fleet car).

When an assigned fleet car is not in operation, five fleets pay the employee 10 cents a mile for the use of personally owned vehicle; one pays 12 cents a mile; another pays 14, and one pays 11 cents a mile. Three fleets have descending scale of payments-14/12; 13/11/9, and 14/9 for varying numbers of miles driven. One fleet repeats its "50 cents for each five miles or portion thereof" formula.

 

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