Automotive Fleet
MenuMENU
SearchSEARCH

Personal-Use Charges Increase to $128 in 2015

In 2015, average monthly personal-use charges increased to $128, up from the $123 average monthly charge reported in 2014. Personal use remains a sensitive topic, both with drivers and fleet managers.

September 4, 2015
Personal-Use Charges Increase to $128 in 2015

Image courtesy of iStockphoto.com.

4 min to read


Image courtesy of iStockphoto.com.

In 2015, average monthly personal-use charges increased to $128, up from the $123 average monthly charge reported in 2014. In just the past four years, average monthly personal-use charges have increased by $12 per month ($116 in 2012 vs. $128 in 2015). Additionally, company fleets averaged 1,742 business miles per month and 398 personal miles per month.

In the endless discussion of reimbursement vs. a company-provided vehicle program, personal use is one factor that remains front-and-center in fleet decision making.

Ad Loading...

And, personal use remains a sensitive topic, both with drivers and fleet managers, which can cause headaches beyond the obvious issues revolving around accurate mileage reporting.

As one fleet manager who wished to remain anonymous put it: “Most drivers do not like paying for personal use, and they voice their opinion clearly. My best answer is, ‘For under $220 per month you drive a new vehicle, with all maintenance included, plus paid fuel and insurance. What more could you possibly ask for?’ ”

At a Glance

Some key takeaways from Automotive Fleet’s annual personal-use survey include:

  • Average monthly personal-use charges are up $5 over 2014.

  • More fleets are requiring an MVR on non-employees driving company vehicles.

  • The majority of fleets continue to allow personal use of company-provided vehicles at all times, whenever necessary.

Personal Use By the Numbers

For 2015, the percentage of fleets that operate field vehicles, 79 percent allow personal use, down from 82 percent in 2014. However, 38 percent of fleets that utilize non-field vehicles (such as executive fleets, etc.) increased their allowance of personal use by 7 percentage points over 2014.

Year-over-year, the majority of fleets allow an employee’s spouse personal use of a company vehicle, and 2015 was no different with 73 percent of fleet managers reporting that an employees’ spouse was allowed personal use of a company-provided vehicle, up from 65 percent in 2014. More fleets are allowing an employee’s licensed children personal use of a company-provided vehicle, at 8 percent in 2015 vs. 6 percent in 2014.

Only 28 percent of fleets in reported that they allow no one, aside from the employee, personal use of a company-provided vehicle, down from 34 percent in 2014.

Ad Loading...

Conditions for approved personal use remain consistent year-over-year, with most fleets (79 percent in 2015) opting to allow personal use at all times, whenever necessary, relatively flat compared to 2014.

Additionally, job function remains the No. 1 factor fleet managers use to determine the assignment of company-provided vehicles, at 70 percent of respondents in 2015, but down from a high of 77 percent of respondents in 2014. Fewer fleet managers (53 percent in 2015 vs. 58 percent in 2014) are utilizing annual business miles driven to govern vehicle assignment, followed by job title at 49 percent, equal to this past year.

However, one big change is the increase in fleets that are requiring MVR checks for all non-employees driving a company-provided vehicle, at 70 percent in 2015 vs. 61 percent in 2014, and 67 percent reported in 2013.

The majority of fleets still perform a true-up, or personal-use reconciliation each year (70 percent in 2015, up just 1-percentage point over 2014). However, an increasing number of respondents reported quarterly reconciliations, creating an all-new category. The percentage of fleets that never perform a true-up decreased by 2-percentage points, from 14 percent in 2014 to only 12 percent in 2015.

Data obtained from AF Research Department. 

Fleet managers continue to use an industry average or competitive benchmarks in determining their personal-use charges (at 30 percent of respondents), down from 37 percent in 2014. The second-most popular method to determine personal-use charges was calculating the cost to their company at 20 percent (equal to 2014), followed by including a fuel benefit at 18 percent (up 2-percentage points over 2014). More fleets are opting to use a prorated annual lease value (ALV) when determining personal-use charges, at 14 percent in 2015 compared with 12 percent in 2014.

Ad Loading...

While overall average personal-use charges are $5 higher per month in 2015 vs. 2014, when breaking down overall average personal-use charges, the majority of fleets (58 percent) charge more than $100 per month, down from 63 percent in 2014. However, the percentage of fleets charging more than $150 per month increased by 2-percentage points in 2015 over 2014 figures.

When collecting personal-use charges, the majority of fleets continue to opt for a payroll deduction (87 percent in 2015, up 1-percentage point from 2014). This year, fewer fleet managers are reporting opting to collect personal-use charges by employee check (3 percent in 2015 vs. 5 percent in 2014), while the percentage of fleet manager respondents who utilize an expense account deduction (4 percent) remained flat year-over-year.

Additionally, the most common way employees are reimbursed for business use of a personally-owned vehicle remains a per-mile rate at 86 percent (same as 2014), followed by utilizing a fixed & variable rate (FAVR) allowance at 6 percent (down 1-percentage point over 2014 figures). The remaining percentage of fleet managers equally utilize either a flat monthly rate or combination per-mile/flat rate.

Challenges in Personal Use

From managing personal use of executive vehicle fleets to ensuring all drivers accurately report business and personal miles, a personal-use program does have its challenges.

A few fleet managers, who wished to remain anonymous, shared some of their personal-use challenges with Automotive Fleet:

Manager & Driver Education

  • “My largest headache revolving around personal use is explaining corporate ‘Limited Personal Use Policy’ to managers and drivers in newly acquired business units. It is difficult if they come from a history of unlimited personal use ‘company car’ fleet environment.”

  • “My largest headache is explaining to employees how the fringe program works, and annual lease value (ALV) and IRS tax implications.”

Accurate Reporting

  • “One concern is the under-reporting of personal mileage. Accident data (showing time/day) seems to suggest that drivers are actually using their vehicles for personal use at two or three times the rate that is actually reported.” 

  • “Utilizing our mileage reporting tool and adding or deleting drivers from it is extremely difficult.”

  • “Drivers simply fail to report their mileage.”

  • ”Driver’s don’t think they even drive personal miles so they don’t report it.”

Subscribe to Our Newsletter

More Operations

SponsoredMay 15, 2026

Hybrids: Electrification Without the Challenges

For fleet managers, fuel is one of the biggest line items in the budget — and it's one hybrids can shrink without changing how your people work. Download the eBook to see the numbers, understand the technology, and get a step-by-step guide to making the switch.

Read More →
Man speaking during an Automotive Fleet interview beside text reading “The 60% Driver Improvement Nobody Expected!” with blue motion graphics background.
Operationsby Chris BrownMay 14, 2026

How NOV Uses Telematics to Improve Fleet Safety Across 160 Locations

James Victory of NOV discusses how the company manages fleet safety, maintenance, and telematics across more than 150 locations supporting oilfield operations throughout the U.S.

Read More →
A graphic with Ford Pro's Steven Sanstostasi's headshot on it representing the Fleet Meets series.
Operationsby Faith HowellMay 14, 2026

Fleet Meets: Steven Santostasi

This edition of the Fleet Meets series features Steven Santostasi, the current TSP channel manager for Ford Pro.

Read More →
Ad Loading...
Cover of a whitepaper titled “The Hidden Costs of Departmentally Assigned Vehicles on Your Fleet” featuring a black fleet vehicle driving on a road at sunset. Subheadline reads: “Discover how your fleet can reduce costs and minimize risk by implementing vehicle sharing.” The document focuses on fleet optimization, vehicle sharing, cost reduction, utilization tracking, and risk management for fleet operations.
SponsoredMay 13, 2026

Why Fleet Managers Are Replacing Departmental Vehicles with Shared Motor Pools

Departmentally assigned vehicles often create hidden costs through underutilization, poor visibility, and increased administrative burden. This white paper explores how shared motor pool strategies help fleets reduce costs, improve accountability, and optimize vehicle utilization.

Read More →
Three team members in shop with Chris
Operationsby Chris BrownMay 12, 2026

Soap Box Derby Challenge: Assembling the Crew

Meet Gabriel, Matthew, and Angel — the team helping bring this soap box derby build to life.

Read More →
Handshake graphic featuring BBL Fleet and Velcor Leasing Corporation logos announcing BBL Fleet’s acquisition of Velcor to expand fleet management services nationwide.
Operationsby News/Media ReleaseMay 8, 2026

BBL Fleet Acquires Velcor Leasing Corporation

BBL Fleet expanded its footprint in the fleet management industry with the acquisition of Velcor Leasing Corporation of Madison through a stock purchase agreement finalized Feb. 27, 2026.

Read More →
Ad Loading...
Graphic reading “What’s New From Lytx at Protect 2026?” over a blue digital network background highlighting Lytx fleet technology and AI-powered safety solutions.
Operationsby News/Media ReleaseMay 6, 2026

Lytx Introduces New AI Fleet Technologies at Protect 2026

The company introduced new AI-driven fleet safety and operations technologies during its annual user conference.

Read More →
Cover image for the “5th Annual Market Pulse Report” by Element titled “Navigating fleet management in 2026: Data and insights shaping the future of fleet and mobility.” The design features an aerial view of a cable-stayed bridge with vehicles traveling on a highway beside a dense green forest. A teal graphic panel overlays the lower portion of the image, with the Element logo and tagline “Intelligence in motion” at the bottom.
SponsoredMay 6, 2026

Fleet Costs Are Rising: Here’s How Leaders Are Responding

Fleet leaders are under pressure to reduce costs, adapt to economic uncertainty, and make smarter decisions. See how peers across North America are responding with real data, proven strategies, and forward-looking insights. Download the 2026 Market Pulse Report to benchmark your strategy and uncover where you can gain an edge.

Read More →
A blue Automotive Fleet graphic representing the weekly AF News Recap series.
Operationsby Faith HowellMay 4, 2026

From Waffle House to AI: Fleet Trends You Need to Know

In this AF news recap, host Faith Howell covers how Waffle House stepped up during disaster response and new AI tech on the market.

Read More →
Ad Loading...
OperationsApril 30, 2026

Fleet Operations in the Age of AI: Navigating Ethical and Legal Challenges

AI is no longer a future concept for fleets—it’s already embedded in the tools, data, and decisions that operators rely on every day. In this episode of the Fleet Forward Podcast, recorded live at Fleet Forward, industry leaders take the conversation beyond hype to examine what responsible AI adoption really looks like in fleet operations.

Read More →