Motus and Flexco Fleet Services partnered to help businesses transition from owning fleet vehicles to reimbursing employees for the business use of their personal vehicles.
The collaboration will add Flexco’s vehicle remarketing programs and employee buy-back program to Motus’ onboarding services that help companies implement personal vehicle reimbursement plans, the firms said in a Thursday (Aug. 22) press release.
“Flexco’s efficient and flexible vehicle remarketing solutions play a crucial role in enabling our customers to efficiently divest their fleet vehicles according to their own schedules,” Motus Chief Revenue Officer Vanessa Brangwyn said in the release.
Flexco’s solutions include nationwide vehicle remarketing, transportation services, titles and registration services, and employee car sales programs, according to the release.
The firm’s employee buy-back program allows employees to purchase company cars at favorable rates, the release said.
“When companies decide to move away from fleet vehicles, whether partially or fully, it’s critical to have supportive partners who can make this transition smooth and beneficial for employees,” Dan Fierro, head of sales and marketing at Flexco, said in the release. “Flexco can customize programs and utilize upstream remarketing technologies that are intuitive and user-friendly, and Motus ensures that employee expenses are covered once they begin using their own vehicles for business purposes.”
A growing number of companies are shifting to personal vehicle reimbursement because of the rising costs and liabilities associated with company-owned vehicles, Brangwyn said in the release.
One alternative to company-owned vehicles, a fixed and variable rate (FAVR) program, provides a reimbursement method in which employees are reimbursed for fixed costs like insurance premiums, license and registration fees, taxes and depreciation, and variable expenses like gas, oil, vehicle maintenance and tire wear, according to a blog post on the Motus website.
The method reimburses teams the right amount for what they’re driving, includes all the costs that go into driving, and accounts for the differences in insurance premiums and gas prices between different states, per the post.
“On average, companies that switch from fleet to FAVR can save about 35% on their vehicle reimbursements,” Ben Reiland, content and SEO specialist at Motus, wrote in the post.
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