Lease your company vehicles, or reimburse? When you’re responsible for providing your staff with their work vehicles, you face an important choice: to lease the vehicles, or to reimburse staff for the use of their personal vehicles. Which is best? This paper outlines the costs and benefits. Leasing costs include far more than the lease fees. You must also include interest, depreciation, maintenance and repairs, fuel, and insurance—and then compare that total to the fixed or variable reimbursement scheme, over the entire duration of a comparable lease. The value of vehicles is a key variable. It affects the capitalized cost, fuel, maintenance and repair costs, and the estimated depreciation in value over the lease term.

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