# Comparison of Three Alternatives: Company Car vs Employee's Own Car vs Rented Car
For decision-making, an organisation may compare the cost of providing transport to its employees through three alternatives. Each alternative includes different cost components.
## Cost Components for Each Alternative
| Cost Item | Company's Car | Employee's Own Car | Rented Car |
|---|---|---|---|
| Depreciation | Yes | No (borne by employee) | No (owner bears) |
| Reimbursement (to employee) | No | Yes | No |
| Hire Charges | No | No | Yes |
| Insurance | Yes | Yes (if reimbursed) | No (in hire) |
| Repairs | Yes | Yes (if reimbursed) | No (owner's) |
| Petrol / Fuel | Yes | Yes | Yes (usually) |
| Tyres | Yes | Yes (if reimbursed) | No |
## How to Use This Table
1. Read the question to identify which alternative is being costed.
2. Tick only the cost items the organisation itself has to bear under that alternative.
3. Add up to get total cost; divide by kms (or trips) to get per-km cost.
4. Choose the cheapest alternative for the organisation.
## Key Decision Rule
Select the alternative with the lowest total cost for the same level of service / kms run.