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Your employees may be better off driving their own cars.

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This story appears in the October 2002 issue of Entrepreneur. Subscribe »

Do your employees balk at driving boring company cars? Let them drive personal cars on business under a company reimbursement program.

In addition to conserving your capital for other expenses, reimbursing your staff for using their own cars instead of a leased or company-owned fleet can ease administration, eliminate the expense of cars sitting idle, reduce exposure to insurance liability, and even lower your taxes. Employees benefit, too, because record-keeping is minimal, and mileage can be calculated using monthly changes in local gas prices rather than the flat national annual rate that often results in inequities.

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