Automotive Fleet
MenuMENU
SearchSEARCH

Fleets Tightening Personal-Use Policies

Average personal-use charges have remained flat in 2017, but certain trends have revealed other telling details about the status of personal use.

Andy Lundin
Andy LundinFormer Senior Editor
September 1, 2017
Fleets Tightening Personal-Use Policies

Graphic courtesy of getty images.

4 min to read


Graphic courtesy of getty images.

Year-over-year, personal-use charges for company-provided vehicles have remained flat when compared to last year. Personal use charges rose by a subtle $2 when compared to last year, with this year at $134.

Ad Loading...

Indeed, while certain numbers remained relatively consistent to what was reported in 2016, some segments have revealed shifts that may reveal new trends to how fleets approach personal-use policies.

Ad Loading...

Comparing the Numbers

Methods for how employees are reimbursed for business use of a personally owned vehicle; how personal use-charges are determined; and how often a fleet performs a true-up shifted. These shifts may also reveal fleets adjusting the way they approach the concept of granting personal use of a company vehicle for employees.

For example, 71% of fleets report allowing employees to drive-company provided vehicles at any given time. This is down 5% from the 76% reported in 2016, and this number has slowly decreased over the last few years, according to Automotive Fleet data. In 2013, the percent was reported to be 83%.

Further still, the survey also found that 17% of fleets will only permit the conditions of personal use if driving to and from work, this was up 10% from what was reported last year, which was a percentage that remained relatively stagnant in years prior.

Indeed, some fleets reported personal use monitoring as being problematic.

At a Glance

Some takeaways from Automotive Fleet’s 2017 Personal Use Survey include:

  • Fleets that allow for the use of company-provided vehicles at any time are declining.

  • Fleet reporting allowing personal use as a fringe benefit declined in 2017. 

  • Fleets who reported never performing a true up increased this year.

“Some employees do not think that driving to and from the office is considered personal time,” said one anonymous fleet manager. “My inverse to that thought is to have people look at driving to or from work as an hourly employee.  Do you get to punch in on the timeclock when you leave home to get to work?  No.”

Ad Loading...

Further adding to the issue of fleet drivers not properly reporting personal use, some driver aren’t reporting mileage accurately. One fleet who moniters personal use with the IRS mileage reimbursement rate addressed this.

“The accurate reporting of personal use is on the driver and not on the company. Yes, there is some concern about offsetting expenses to the company, but it is marginal if a manager is keeping tabs on what an employee is doing,” said an anonymous fleet manager. “The best practice that I use is that I communicate that accurate reporting is the responsibility of the employee.”

Factors that govern the assignment of company provided vehicles have remained relatively stable to 2016 data. However, the percentage of fleets reported that the vehicles are offered as a fringe benefit dropped 12% when compared to 2016.

Fleet managers further commented on issues related to offering company–provided vehicles as a fringe benefit.

“We continue to struggle to get our leadership team to sign off on much needed fringe reimbursement increases. Our current fringe reimbursement falls well short of recovering personal use operational costs of the vehicles,” said one fleet manager who requested anonymity for the study.

Ad Loading...

For personal use of a vehicle for anyone other than an employee, the numbers stayed consistent to what was reported last year; the number of fleets who don’t allow anyone other than the employee to drive the vehicle rose significantly in 2016 and inched up a percentage point to 44%. Meanwhile, the number of fleets who allow the employees’ spouse to drive a vehicle declined 4% this year to 53%. This percentage has declined gradually over the last several years, according to Automotive Fleet data.

One of the more notable shifts when comparing this year’s data to what was reported last year is the amount of times that a company performs a personal-use reconciliation, or “true up”, which has been changing, according to survey data. While many fleets perform a true up annually, the percentage has dropped significantly, going from 61% reported last year to 49% this year.

Also, fleets who reported never performing a true up increased from 13% last year to 25% this year.

Data courtesy of AF Research Department.

The way personal use was determine also showed some substantial shifts this year: the amount of fleet using a pro-rated annual lease value dropped from 26% in 2016 to 16% in 2017, and those who calculated the cost of the company increased from 15% in 2016 to 22% in this year’s survey. Using an industry average or competitive benchmarks to determine personal-use charges led the way of how fleet determines personal-use charges.

Subscribe to Our Newsletter

More Operations

Amalgamation of fleet operating costs for 2026
Operations•by Chris Brown•November 1, 2026

Managing Fleet Costs in an Era of Permanent Volatility

Fleet operating costs have risen more than 20% since 2020, raising a key question: When does extending a vehicle's service life stop making financial sense?

Read More →
An Automotive Fleet podcast thumbnail
Operations•October 29, 2026

The Next Evolution of Fleet Management: Autonomous Operations

This opening keynote session at the Fleet Forward Conference highlights the future of autonomous driving for fleets.

Read More →
A picture of a transparent catalytic converter with blue text and the Automotive Fleet logo on the top.
Operations•October 29, 2026

How to Reduce the Total Cost of Risk From Catalytic Converter Theft

A stolen catalytic converter can cost fleets far more in downtime and lost productivity than in repairs. A total-cost-of-risk approach can help fleet managers quantify their exposure and prioritize theft prevention.

Read More →
Ad Loading...
AF news recap thumbnail
Operations•by Faith Howell•October 26, 2026

Personal-Use Charges Rise as Vehicle Values Fall | AF News Recap

Personal-use charges are climbing, wholesale used-vehicle values are declining, and commercial fleet sales growth is slowing. This week, we're breaking down the latest fleet data, plus how Element Fleet Management is helping Waymo prepare for its first Canadian robotaxi market.

Read More →
A transparent blue background of a hand stamping a paper is the background of text that says "What about fleet policy exceptions?" with the Automotive Fleet logo in the bottom right corner.
Operations•by Faith Howell•October 20, 2026

Here's When You Should Make an Exception to Fleet Policy

Fleet policies are designed to create consistency, but not every driver or situation fits neatly within standard rules.

Read More →
A hand writing on an ipad with a transparent AI graphic over it
Operations•October 20, 2026

AI-Native or AI-Acquired: What Should Fleet Managers Look for in an AI Platform?

Six questions can help fleet managers look beyond AI marketing claims to evaluate integration, data access, and real-world operational performance.

Read More →
Ad Loading...
Chevin 2026 Buyes Guide cover
Sponsored•October 14, 2026

A buyer's guide to fleet management software in 2027

Buying fleet management software in 2027 means looking beyond features and price. As fleet operations, technology and expectations evolve, this guide explores what today’s fleet professionals should consider when choosing a system that can deliver value now and adapt to what comes next.

Read More →
An overhead image of a freeway system with no vehicles
Sponsored•by Shelley Mika•October 13, 2026

What Will Shape the Next Era of Fleet Management?

EVs, AI, and autonomous vehicles are reshaping fleet management. Discover what’s ahead—and how fleet leaders can prepare for the next era.

Read More →
A Cox Fleet technician working on the left with the rear view of a military man saluting a flag on the right
Operations•October 8, 2026

How Fleets Can Recruit and Train Veterans for Technician Roles

Here's how the technician shortage has affected uptime for fleets, and what to do about it.

Read More →
Ad Loading...
A transparent toll background with the Automotive Fleet logo and Neology logo on top.
Operations•October 5, 2026

Avis Budget Group Deploys Neology Toll Management Technology Across Major Brands

Neology’s neoFleet platform will manage toll transactions and toll-authority operations for vehicles across Avis, Budget, Payless, Budget Truck and Zipcar.

Read More →