Vehicle Reimbursement Model Comparison

At its heart, a good business vehicle plan should seek to elicit behavior neutrality from employees –meaning it should neither incentivize nor deter an employee’s business-related travel time. It will provide payment for both fixed and variable costs and mileage, resulting in a program that is both efficient and free of employee complaints.

The implementation of a fair and accurate reimbursement program requires planning and the presence of reliable data that speaks to factors such as local territory fuel prices, garage labor rates, local territory insurance premiums, license and title fees, as well as state and local taxes.

The six common business vehicle programs in use by businesses today, include:

  1. Company Car Fleet  –  Owned Vehicles
  2. Company Car Fleet  –  Leased Vehicles
  3. Flat Rate Allowance
  4. Flat Rate plus a Fuel Card
  5. Cents Per Mile
  6. Fixed & Variable Reimbursement

Comparing Reimbursement Models?

Simply click through to learn more about the listed reimbursement models.

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What Our Clients Are Saying

"At first, we were reluctant to move away from fleet management. We saw it as an integral part of our corporate culture and also thought of it as recruitment leverage. Unfortunately, after one of our vehicles was involved in a DUI it became clear that the program was simply too risky to maintain. Continue reading “Testimonial – Risk Management” »