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Risk and liability. Burdensome administration. Unnecessary capital expenses. That’s just three areas where traditional company vehicle programs impact an organization. Enterprises of all sizes can benefit by switching to a vehicle reimbursement program, if it’s structured to meet the needs of both the company and the employees. That’s where we come in. CarData will consult with you to learn your business goals, construct and customize your VRP, and provide one-on-one guidance employees need to understand how a customized fixed and variable rate (FAVR) works.
Get All the Facts
Every business decision requires careful consideration of your options. We’ll help you understand the impact of each type of VRP
Vehicle Reimbursement Program vs. Cents-per-Mile
When used as a primary method of reimbursement for regular business driving, the Cents-per-Mile rate does not respond as expected. It does not account for changing fuel prices, regional insurance rates and local taxes.
Vehicle Reimbursement Program vs. Flat Rate Allowance
Companies tend to use the Flat Rate method for the simplicity of its administration. However, flat monthly rates fail to account for fluctuations in fuel prices, different regional costs and the differences in miles driven for each employee.
Vehicle Reimbursement Program vs. Company Car Fleet
With company cars, the company assumes all responsibility and risk, and pays for all vehicle-related expenses including depreciation, license, insurance, maintenance, accidents and fuel.
Vehicle Reimbursement FAVR Program Explained
The costs of owning and operating a vehicle are divided into fixed expenses, which are calculated as dollars-per-month, and variable expenses as cents-per-mile, amounts which are governed by the IRS procedures under the Accountable and FAVR plans.