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Flexible, Fair & Accountable VRP Solution
There’s a lot to consider when it comes to any decision that affects your enterprise. CarData can help you make the right choice regarding your vehicle program by guiding you to the next step in the process. The fundamental idea to keep in mind is that a FAVR program separates vehicle reimbursement into two distinct categories:
- Fixed Expenses – Costs that do not vary from month-to-month such as licensing, depreciation and insurance, calculated based on the vehicle location.
- Variable Expenses – Everything else that contributes to the cost of operating the vehicle, including fuel, maintenance and actual miles driven while on the job.
With a CarData FAVR plan, known recurring costs are combined with the changing expenses drivers incur doing their jobs. Thanks to our SaaS-based online platform and Mi-Route app, we know the distance driven, down to the mile, record down to the penny fuel consumption expense, and automate administration to just a few clicks. GPS and mapping technologies eliminate mileage “guesstimates.” Real-time data feeds enable us to account for daily changes in fuel prices, everywhere your drivers live and work. And the tax advantages for employees and businesses are an undeniable advantage.
Three Advantages to Remember
Details aside, what makes a FAVR a smart business decision?
Decrease Costs from Day One
- FAVRs are IRS-compliant, non-taxable programs; a dollar in reimbursement is a dollar in the bank
- Compliant FAVR programs eliminate FICA payroll taxes
- Administration time and expense are significantly reduced
Reduce Risks for the Company
- You eliminate company car liability when vehicle is operated by unauthorized driver
- Remove the liability of insuring company cars 24/7
- Eliminate exposure to fuel card fraud and hacking
Elevate Employee Satisfaction
- Accurate, transparent reimbursement minimizes confusion and disputes
- Drivers choose the type of vehicle that fits their job and their personal life
- Employees retain the equity in their vehicle