FAVR: The Modern Vehicle Program More Businesses Are Exploring

Most companies feel pretty good about their vehicle reimbursement programs …at least on the surface. In fact, 90% say their programs support workforce needs fairly well. But dig a little deeper, and another number stands out: 79% are either actively exploring or curious about more modern alternatives.

So what’s driving that curiosity? 

For many, it’s the realization that “fairly well” might not be good enough anymore. As costs climb, compliance rules evolve, and driver expectations shift, more businesses are taking a closer look at FAVR (Fixed and Variable Rate reimbursement) as a smarter, more strategic solution.

Why FAVR Is Worth a Closer Look

FAVR programs break away from the flat-rate mindset. Instead of handing every driver the same stipend or using a one-size-fits-all mileage rate, FAVR customizes reimbursement based on two things: predictable fixed costs (like insurance and depreciation) and variable costs (like gas and maintenance).

That means drivers in different locations, say, Boston and Boise, get reimbursed based on their local expenses. And when structured under an accountable plan, all of it is tax-free.

FAVR isn’t just accurate, it’s efficient. Companies avoid overpaying low-mileage drivers or under-supporting their road warriors. They also eliminate payroll tax waste, which can eat up a large percentage of every stipend dollar.

If your current program feels like a compromise, FAVR might be the upgrade your drivers and your budget have been waiting for.

A Smarter Fit for a Modern Workforce

Today’s teams are more mobile, more distributed, and more cost-conscious than ever. That’s why rigid vehicle programs are losing traction. 

With FAVR, you can adapt your policy to meet real-world driving patterns without sacrificing consistency.

High-mileage field reps? They get accurate, location-specific reimbursements. Occasional drivers? You can pair FAVR with a Cents per Mile (CPM) model for a mixed approach that balances cost and fairness.

And because FAVR programs use real data, they make compliance simple. No more blanket stipends or questionable logs. With tools like Cardata Mobile, trips are tracked automatically, reports are IRS-compliant, and your team doesn’t have to stress over paperwork.

That peace of mind is a big reason why so many companies are curious about what’s next, and why FAVR is standing out.

Is It Time to Modernize Your Vehicle Program?

If 79% of companies are exploring alternatives, there’s likely a good reason. Whether it’s compliance risk, rising costs, or driver dissatisfaction, many flat-rate and legacy programs are starting to show their cracks.

FAVR offers a way forward that’s flexible, fair, and financially sound. And with platforms like Cardata managing the details—insurance verification, rate updates, reporting—it’s easier than ever to make the switch.

Your current program might be working fairly well. But why settle for that, when something better is within reach?

Ready to explore a smarter, more modern vehicle reimbursement model?

Talk to our experts today and see what’s possible.

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