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:
- Company Car Fleet – Owned Vehicles
- Company Car Fleet – Leased Vehicles
- Flat Rate Allowance
- Flat Rate plus a Fuel Card
- Cents Per Mile
- Fixed & Variable Reimbursement
Comparing Reimbursement Models?
Simply click through to learn more about the listed reimbursement models.
- vs. Cents-per-Mile Allowance
- vs. Flat Rate Allowance
- vs. Company Car Fleet
- vs. Fixed and Variable Rates