Automotive Fleet

Tag Search Result

IRS

Personal Use Decreases Vehicle Resale Values

While personal use averages 16%, outside market dynamics can cause personal use mileage to increase. For instance, when fuel prices increase, there is typically a spike in employees using fleet vehicles for personal use since the company pays for gasoline.

IRS Raises Mileage Reimbursement Rate

The Internal Revenue Service has increased the business mileage reimbursement rate to 54.5 cents from 53.5 cents for 2018. The new rate will go into effect on Jan. 1.

Types of Driver Reimbursement

There are four types of driver reimbursement models: IRS business mileage reimbursement rate, a fixed allowance, the Fixed and Variable Reimbursement Rate (FAVR), and a hybrid model that uses the FAVR guidelines but delivers the driver payment in a cents-per-mile model.

Driver Reimbursement Perks and Pitfalls

While fleets typically gravitate toward company provided models, there are legitimate reasons they might want to consider utilizing a reimbursement program. However, there are a number of caveats fleets should consider.

a Bobit media brand

Create your free Bobit Connect account to bookmark content.

The secure and easy all-access connection to your content.
Bookmarked content can then be accessed anytime on all of your logged in devices!

Create Account