I’m just confused on why they are forcing me to rent a car at their expense, instead of using my own car. this is the first year they said they are getting me a car.
what could be reasons why they would opt for rental instead of km/milage reimbursement?
I don’t wanna drive no automatic lol
Liability and insurance.
It’s easier for a company to rent a car because the contract states who is responsible for what in the unfortunate event of an accident.
Sure, you can get reimbursed for the mileage, gas, tolls and probably time but not for wear and tear when you’re using your own vehicle. If there’s an accident, who’s insurance is responsible? That becomes very complicated. I know that sounds absolutely horrible…
Over the years, mainly due to litigation, many companies have made it a company policy to not use personal vehicles for company functions.
EDIT: Forgot to add that some companies (including the one I work for) prefer automatic just in case someone else needs to drive that vehicle if the main driver is incapacitated; most people today drive automatic instead of manual transmission.
Can confirm. I had some of the higher ups explain this exact thing to me once when I needed to drive somewhere, and it made sense from all angles to use my own (Otherwise I’d have to first drive two hours in the wrong direction to pick up the rental)
We ended up with a policy change that allowed for private cars being used with the explicit go-ahead from the line manager.
This seems like the right answer. Also, if there is an incident and your personal insurance is involved, you might be hit with higher premiums for years, and would have a case to have your employer to have the increase be reimbursed.
The cost of the rental car avoids a lot of bureaucratic headache on both sides that could last years if something were to happen.
if there is an incident and your personal insurance is involved, you might be hit with higher premiums for years, and would have a case to have your employer to have the increase be reimbursed.
You are correct.
This is where a lengthy mediation comes in with both parties trying to avoid litigation. For companies, it’s almost always cheaper to settle (I speak from experience having sat at both sides of the table).
Most people don’t realize that a moving violation ticket can cost them approximately $45 or more a year for the next four years, depending on the infraction and/or state you live in.
I absolutely agree with you.
This is the correct answer. I once found training that was a 3 hour drive away. The company was still penny pinching so I offered to drive myself so only the hotel needs to be covered. They denied my request because of the liability problem. They HAD to be the one to shoulder travel.
To add on a hypothetical:
If someone drives into you and totals their car and hurts you while you are on work business, they only worry about paying for your costs. The car is a tax writeoff to them.
If someone drives into you and totals your car and hurts you while you are on work business, they need to now worry about paying for you and your car.
Hypothetically, yes but there are injuries and other factors involved. Also, who does the car belongs to?
If someone drives into you and totals their car and hurts you while you are on work business, they only worry about paying for your costs.
In many states, if you (car 1) are hit from behind, it is their (car 2) fault. Fault needs to be determined to establish who is legally responsible for the financial burden for property damage, injuries, etc. **
The car is a tax writeoff to them.
The insurance companies will determine if a vehicle is totaled; if the total repair cost is more than the vehicle’s Actual Cash Value then the vehicle is a total loss.
If someone drives into you and totals your car and hurts you while you are on work business, they need to now worry about paying for you and your car.
Again, any collision where injuries are involved is always complicated. Fault needs to be determined in order to establish legal responsibility. ***
**There are 16 states in the US with No-Fault Insurance Laws. Drivers in these states are required to have Personal Injury Protection (PIP) on their car insurance policy which helps pay for medical costs after a vehicle accident regardless of who caused it.
***Workers’ Compensation is a type of insurance that provides salary replacement and medical benefits to employees become ill or injured because of their job. This is not my area of expertise.
I didn’t realize until now, I’m so sorry for the lengthy response.
They could have deals with rental companies that make the rental cheaper to them. It could be a way to save money as people won’t bother with the rental and since it’s violating company procedure, they don’t have to pay mileage reimbursement. It could be a way to funnel money to a rental company rather than directly reimbursing employees.
In the US they only reimburse around $0.50/mile (last I knew from several years ago) so it’d have to be a killer deal to be cheaper for rentals than reimbursement. OP did reference kilometers, but I imagine the reimbursement rate is similar wherever you are.
Do they mean getting a taxi to/from the party? So you can get ham-diddly-hammered and get home? That’s what one of my companies did
no, my work is 7 hours from my residence. I drive to the office for the Christmas party.
this year, they are renting me a car instead of my driving my own car.
I would never question safe transport after a party
Will the full tank you get with the rental get you there?
Are they covering your fuel costs?
If yes, there’s your answer
I don’t know about the rental.
my personal car I end up doing 4.3L/100km so about 54Mpg. Like, I doubt it’ll get much cheaper unless it’s electric.
they do cover fuel, kms, and my time spent on the road.
I’m sure it’s a monetary thing but I can’t help but think it’ll be the same, if not more expensive renting.
So they’re covering the cost of the car, the cost of the fuel and also paying you for the hours spent driving?
They must really want you at this event
While I can’t answer your direct question, look at it like this. You are looking for reason why the company wants to not put miles/kilometers on your car, that wants to not waste your fuel, that wants to not put wear and tear on your car for 7 hours (14 hours?)…
While I’d also be confused as to the logic, just smile, say thanks, and enjoy the small additional holiday bonus that you get from beating on someone else’s ride.
Unless you recently pissed someone off, and they just happen to know someone in the rental gig, whereas I’d be very cautious about the condition of the brakes.
That last paragraph wasn’t really needed was it
You never know!
Not really rated but out of curiosity, can you not train or fly? 7 hours of driving (assuming x2 for there and back) seems like a lot for an office party
no trains go there or planes unless I find some dude that owns a plane. I don’t mind the drive personally, it very scenic and I love music so that keeps me going easily
Could be group rate on the lease which makes it more cost effective then paying you for 2 trips. Best to ask your manager about it.
Incompetence, perhaps…
I worked a job where they would put you up in a hotel room for the night since the job was all over the whole state. Yet I was only ever 1-2 hours from home, so I wasn’t using the hotel rooms. They got mad at me that I wasn’t using them, because it was costing them money, to which I had to ask “Why is it costing you money? You ask if I need the room every job, every job I say no, and you’re still paying for a room?”
They fired me.
Often “to get someone a car” means to get them a car and driver, in my experience. Maybe they’re offering to pay for a cab?
nah, this is a 7 hour drive one-way.
ain’t no cab gonna be cheaper lol personal driver would be nice though. I could play guitar the whole way
Oh if it’s that long a drive, the cost of the rental and fuel is way less than the mileage reimbursement would be. I’m frankly surprised they’re not flying you at that distance, unless the plane trip would include a lot of driving on the front and/or back ends.
This here is one likely answer. One other (less likely) might be insurance, although I would have to strain my imaginatiom quite a bit to come up with an explanation that nakes insurance a good reason to do this for a christmas party vs. a regular drive to work. Maybe they want to prevent “fraternization” by making clear “we know where your rental cars will spend the night”? ;)
What kind of job is this? Seems super weird.
My best guess is that someone at enterprise paid a lot of money to whoever made that decision.
Theyre horny for that munnies in some way would be my guess but I have no clue lol
Maybe they don’t have faith in your choice of car or diligence with keeping it presentable.
Or maybe someone is doing a nepotism.
lol, it’s a Christmas party for work. no clients will see my 2 year old car.
I just find it odd they would add complexity to the 7 hour drive with having to pickup/dropoff, potential upselling, car not available, magical damage the rental company might claim post dropoff.
vs me just driving my own car which I’ve done the last 5 years.
I can’t find and valid reason for it. I doubt it’s even cheaper. oh well…
I wonder if someone tried claiming damage to their personal car?
Did they also pick the car rental company for, assuming there is more than one option in your area? Increasingly sounds like nepotism or similar …
yeah major city. tons of options. enterprise was their chosen company.
might very well be nepotism, just such an odd decision to take on the risk of renting a car vs having me use my own.
Probably entirely to do with insurance. They can’t dictate to you what level of insurance to purchase for your private vehicle, but they can for a rental.
Why it matters for the party vs a routine work trip… If they are providing alcohol, they automatically are assuming some degree of liability for your actions when you leave the party.
What if you have an accident and total your personal vehicle? You could ostensibly sue them.
What if you have an accident and god forbid kill or injure another? They or their family could sue your employer (as well as you ofc).
A rental and associated insurance coverage will provide them with a knowable degree of financial buffer before they would have to pay damages out of pocket. If you drove your personal vehicle, they have an unknown and maybe nonexistent amount of insurance coverage to help with legal fees and damages in the event of something terrible happening. All because they provided you alcohol.
This is probably about risk tolerance and not about pinching pennies.
Surprise company trip? I’ve been in three of those.
nah, xmas party. one of the few times I run the commute into the actual office. it’s nice seeing everyone esp this time of the year
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