It’s Not Personal; It’s Business
“Many fleet operators support take-home vehicle programs as a benefit to employees.” | SOURCE: Liz Klein, Director of Mid-Market & Commercial Sales
Company car privileges require forethought and planning.
For many employees, a company car is a major perk. However, a company car program is not without its challenges. As Liz Klein, Director of Mid-Market & Commercial Sales – Canada at Samsara explains, “Many fleet operators support take-home vehicle programs as a benefit to employees, but doing so responsibly requires the right visibility and safeguards.”
In other words, from the point of view of a fleet managers, company vehicles are simply assets that need to be managed. Where do you draw the line between personal and business use? How can you prevent fraud? And what policies should you have in place before handing over the keys to an employee?
What complicates the issue even more is that not all company car programs are necessarily the same. Job site indeed.com explains it this way: “Some company cars are take-home vehicles, allowing employees to commute to the office conveniently. However, some company cars stay in the company compound or parking lot until an employee requires it for a delivery, site visit, an appointment or meeting, or any business activity that takes them away from the office. Who gets the benefit of a company car largely depends on the industry and type of business providing the vehicle.”
It starts with a clear policy
Regardless of what a company car programs looks like in your organization, according to a team of experts at Element Fleet Management, step one is to implement clear eligibility and usage policies that outline who qualifies to take a company vehicle home and under what conditions.
“If the company directs the employee to perform a task that requires a vehicle, that is business use,” Element’s team explains. “The only consistent exception is commuting (driving to and from work), which is considered personal use under tax law.”
According to Element, vehicle assignments should be based on job requirements. Furthermore, there has to be an understanding that these privileges can be rescinded at any time. “For example, a common benchmark might require employees to drive at least a certain number of business kilometres per year. Fleet managers should review annual taxable benefit reports to ensure employees meet this threshold and reassess vehicle assignments for those who fall below.”
Another point worth considering is developing different policies for services vs. sales fleet. According to Element, that policy should be reviewed by the organization’s HR team, union if applicable, as well as fleet management companies to ensure all organizations are able to operationalize the policy and the consequences if the policy is not being followed.
The policy should be updated as needed, and annual driver acknowledgement should be obtained. Element’s team says that the responsibility for understanding and adhering to legal definitions should rest with the employee. The policy should make this expectation clear. Including this accountability not only protects the organization but also empowers employees to make informed decisions.
Policies should also set boundaries for personal use, and ensure drivers have a clean driver abstract. Element points out that companies should prohibit using fleet vehicles for vacations or limit personal driving to within a specific geographic radius (e.g., 100 kms from home). These measures help preserve the business purpose of the vehicle and reduce unnecessary wear and risk.
Weighing the risks
There are several risks associated with allowing employees to take company vehicles home, Element points out: “If the vehicle is parked in an unsecured area or is branded, it becomes more vulnerable to theft or vandalism. Liability also increases if the vehicle is used for unauthorized personal activities.”
Strict policies should explicitly prohibit high-risk use, such as ride-sharing (e.g., driving for Uber or Lyft) or using the vehicle to move personal items like furniture. Without such controls, Element’s team points out, companies could face increased insurance claims, liability exposure, or even reputational damage.
Monitoring use
One of the questions fleet professionals have to consider is whether or not they should monitor the use of company vehicles. According to Element, “Yes, fleet managers should monitor usage—at minimum, annually—to ensure vehicles are being used appropriately.”
Furthermore, Element explains that it is an employee’s obligation to report personal mileage if they use a company vehicle for non-work purposes. “Reviewing taxable benefit reports, or analyzing monthly or quarterly mileage data can help identify anomalies or excessive personal use. For instance, some companies want to see at least 50% of business kilometres vs. personal use.”
However, relying solely on the honour system may not be sufficient. According to Element, “Telematics and geofencing tools provide real-time insights into vehicle location and usage patterns, helping to enforce policy compliance. Cross-referencing fuel purchase data with trip records can also help detect out-of-policy usage.”
Samsara’s Klein adds: “Companies can use real-time GPS tracking, geofencing, and trip tagging to clearly distinguish between business and personal use. Our platform helps ensure compliance with usage policies, monitor fuel consumption, and detect unusual activity—all while respecting driver privacy. This allows companies to optimize operations and maintain accountability, even when vehicles leave the yard each night.”
Fuel card data
Another key consideration is whether or not each employee gets a fuel card. “Fuel cards are typically standard for employees who take company vehicles home,” Element’s team explains, “as they streamline expense management and improve visibility into fuel usage. In rare cases—such as with senior executives—reimbursement may be handled differently, but this is the exception.”
As mentioned above, to monitor personal vs. business fuel usage, companies can match fuel card transactions with mileage logs or telematics data. “A strong fleet policy will further reinforce responsible behaviour, for instance, by restricting use during personal vacations or outside a defined radius from the employee's home or office,” Element’s team adds.
Clearly, company car privileges require forethought and planning. While the employee and the HR department may see it as a perk and a way to retain talent, fleet managers need to manage these assets, and monitor use, in order to limit risk and liability.
