Offical Car Policy - Policy Formulation

Dear Seniors,
I am working with Mid. size Organisation (Reality) , I have one query to put before seniors and need your inputs in the matter. My Management wants to give personal car to key people in the organisation, as admin point of view I need your help in following points :
1. Whether it is viable to purchase car on company's name?
2. After 5 years with depreciation to car it will be no use to company, is there any other option?
3. Fuel reimbursement policy - need your inputs.
4. Regular maintenance, insurance cost and any other damages while driving for personal use - who will spend?
The car is given to employee to take home after office hours, it is self driven, FYI.
If any one can send me a Car usage policy or something like that.
Your Valuable suggestions are requested for setting up a policy for the purpose.
Dilip Bhandari
HR Manager

Hello,

Some guidelines to your querry are as follows:

1.You can purchase a car on company's name.

2.You can enter into an agreement with the employee who is eligible for car.

3. You can get another car or sell the car on company's name before full depreciation of 1st car or after the depreciation of that car.

4.You can make a tie up with a petrol pump where your company car can be fueled up on monthly credit basis or you can reimburse it at actuals on the basis of receipts provided but, in this case you can't keep a track on the receipts. You can make a fuel reimbursement policy based on grades or levels in your company and fix certain kms and amount to be reimbursed in that case.

5.Regular maintainance and insurance should be taken care by the company as the car is on company's name.

6. IF any damage occurs after the office hours then, the company may make employee responsible to certain extent of damage by adding a clause in the car agreement.

Hope it is useful.

Hi Dilip
1 you can purchase a car on company's name for five years loan. After 5 years loan has completed then you sell the car, after that you buy a new car. if you sell the car your company will be getting some profit.
2. petrol reimbursement - you can reimburse up to 90% of running kms and pay the fuel cost depends on the vehicle.
3. vehicle wise fuel avg should be fixed.
4. regular maintenance company has to pay.
regards
Thiru

Hi Thiru,
Thanks for reply, Can you elaborate - 90% reimbursement for fuel on running km., one and 2nd, how we can arrive fuel cost depend on segment of car?
if you can throw some light on this.
Dilip