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The right Car Policy for your fleet

Company cars have become an indispensable part of many large and small companies. However, it is often not regulated in companies who is allowed to drive which company cars. The car policy should therefore be a relevant topic for every fleet manager. By firmly implementing transparent company car regulations, you can proactively prevent conflicts within your fleet at an early stage (especially with regard to usage, liability, and safety issues), simplify processes, and also save time and costs through fixed structures.

July 1, 2021

Company cars have become an indispensable part of many large and small companies. However, it is often not regulated in companies who is allowed to drive which company cars. The car policy should therefore be a relevant topic for every fleet manager. By firmly implementing transparent company car regulations, you can proactively prevent conflicts within your fleet at an early stage (especially with regard to usage, liability, and safety issues), simplify processes, and also save time and costs through fixed structures. 

But what exactly is a car policy and how can you find the ‘right’ car policy for your fleet? We will explain it for you. 

What is a car policy? 

A car policy (also known as a company car policy) defines all the framework conditions for the use of company vehicles. It specifies exactly which employees are entitled to a vehicle, which categories, equipment and engines and which conditions of use are defined.

In a sense, the policy sets the rules for managing the vehicle fleet. Its contents should provide clarity and take into account the interests of both the company and the individual employees as well as the interests of the individual employees. With a good policy, you have your fleet under control at all times.

What belongs in the car policy?

What belongs in a car policy depends on the individual fleet. There are patterns, but ultimately a good company policy is always tailored to the requirements of the individual company. The key question here is: Who gets which car and, in particular, which one? The answer to this question can avoid conflicts between employees in the company and also save time and money if a set of rules here clearly and comprehensively defines what the exact requirements are.

The 10 most important components

  • Description of fleet tasks, implementation processes, and responsibilities 
  • Definition of the scope of application for the group of authorized users 
  • List of available vehicle categories including specifications for vehicle selection and equipment 
  • Conditions for the transfer of company cars to employees and the taxation of the non-cash benefit 
  • Distribution of costs and invoice management 
  • Description of service rates, including maintenance, wear, and tear, tire changes 
  • Description of insurance, claims management, and mobility services 
  • Explanation of the procedure for vehicle return, including exceptional reasons 
  • Regulation of occupational health and safety and accident prevention measures 
  • Promotion of image, efficiency, and environmental goals

Source: HDI Global

Entitlement to vehicles in the fleet 

The entitlement to a company car depends individually on the employee’s field of activity and the hierarchical level in which he or she is located. The exact definition of those entitled to a company car is central and, to a certain extent, paragraph 1 of every company car policy and therefore indispensable for a car policy. The entitlements to a company car must be defined either by a provision in the employment contract that allows the employee to use the car, or by an additional provision in addition to the actual employment contract. 

What exactly the employee then gets for a car can also be strategically restricted by the car policy. In this way, employees have the possibility to choose between different models without going beyond the scope. Choice models, which you can take up in the Car Policy, as for example the Chooser user model can contribute to the fact that you grant individuality to your coworkers by the choice of the vehicle and motivate thus extra.

Which form of procurement fits best

As a fleet manager, it is your task to set up transparent cost structures in the fleet. The car policy can help you to set transparent price standards and help you to find the right form of procurement for your fleet. The question is, which procurement form fits here best for your fleet. Specify here exactly what is required for new cars, existing vehicles and used cars. In addition, you should clarify what type of vehicles the fleet provides ( purchase or lease vehicles). In the case of leased vehicles, for example, a claims catalog is helpful to keep a better overview of the guidelines. This also includes rules of conduct and information requirements for drivers when they obtain a leasing contract.

Do you want to learn more about car policy for your fleet? Download our e-book here and learn more. 

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