Data provided by Cardata, a vehicle reimbursement platform, demonstrates the breakdown between managed fleets and reimbursement programs, the most common fleet program mixes, the most popular programs by industry type, and mileage thresholds for reimbursement.
ONLY COMPANY-VEHICLES? OR PAIRED WITH REIMBURSEMENT?
35% of companies surveyed by Cardata in 2024 identified that they operate more than one corporate mobility program. These methods differ based on employee mileage requirements and corporate budget, and mixed models help to accommodate a wider range of business driving requirements.
THE MOST COMMON FLEET PROGRAM MIXES
- 46% of mixed programs utilize fleet vehicles for commercial use and high-mileage roles, and Cents per Mile reimbursement (CPM) at the IRS standard rate for occasional employee drivers.
- 21% of mixed programs utilize specialized fleet vehicles for commercial use and Fixed and Variable reimbursement for non-speciality drivers, including sales representatives, service technicians, and project managers.
Program Breakdown
One Program Vs. Mixed Programs
In 2024, 35% of the companies surveyed by Cardata reported operating more than one corporate mobility program. The selection of programs is based on employee mileage requirements and corporate budget, and mixed models are used to accommodate a wider range of business driving needs.
Source: CARDATA
Most Common Fleet Program Mixes
For Companies with Multiple Programs
For fleet managers operating multiple vehicle program types, 46% of mixed programs utilize fleet vehicles for commercial use and high-mileage roles, and for occasional employee drivers, Cents per Mile reimbursement (CPM) at the IRS standard rate. Meanwhile, 21% of mixed programs utilize specialized fleet vehicles for commercial use and Fixed and Variable Reimbursement (FAVR) for non-specialty drivers, including sales representatives, service.
Source: CARDATA
Most Popular Vehicle Programs by Industry
Cross-Industry Context
|
Industry |
Allowance |
CPM |
Unknown |
FAVR |
Fleet |
Tax-Free Car Allowance |
Fuel Card |
|---|---|---|---|---|---|---|---|
|
Agriculture |
12% |
8% |
0% |
31% |
42% |
4% |
4% |
|
Chemicals & Materials |
22% |
6% |
0% |
50% |
17% |
6% |
0% |
|
Construction & Building |
26% |
15% |
0% |
29% |
21% |
1% |
8% |
|
Energy & Engineering |
21% |
6% |
2% |
27% |
33% |
2% |
5% |
|
Food & Beverage |
19% |
15% |
2% |
34% |
22% |
2% |
4% |
|
Healthcare |
21% |
18% |
3% |
34% |
17% |
1% |
3% |
|
Industrial Services |
21% |
9% |
4% |
35% |
21% |
3% |
8% |
|
Retail |
16% |
18% |
3% |
36% |
18% |
5% |
1% |
|
Other |
20% |
16% |
7% |
28% |
20% |
1% |
6% |
“No Program” and “Other Varieties” make up a negligible portion of 0-3% per industry.
Fleet and vehicle reimbursement programs vary widely by industry. While FAVR programs dominate in sectors like Chemicals & Materials (50%) and Retail (36%), traditional fleet vehicles remain prevalent in Agriculture (42%) and Energy & Engineering (33%). Allowances and cents-per-mile (CPM) reimbursement methods show more balanced use across industries, particularly in Construction (26% allowance) and Healthcare (18% CPM).
Source: CARDATA
Choosing the Best Reimbursement Program Fit
Other Decision Drivers
Business Goals - Target prorities: savings, fairness, tax risk, or standardization
Budget - Total spend available for the program
Industry Standards - peer or competitor program norms.
Driving Costs - current cost per mile9IRS rate, Fuel, maintenance).
Job Needs - Driver roles, travel frequency, equipment, or terrain.
Compliance - Eligibility for tax-free programs like FAVR.
Cost/Benefit - Risk of over/underpay and desired employee benefit. Transition - Fit with drivers’ current program or habits.
Insurance & Policy - Required coverage and company policies.
Source: CARDATA
TOP REIMBURSEMENT TYPES FOR PERSONAL VEHICLES
FAVR: Fixed & Variable Rate Reimbursement is an IRS-compliant, regionally sensitive approach to personal vehicle reimbursement. FAVR allows organizations to offer individualized reimbursements 100% tax-free. By leveraging the local cost data that influences a person’s driving expenses, along with their mileage patterns, FAVR reimburses employees for their specific business-required driving expenses.
Fixed Rate: The fixed reimbursement covers the costs associated with vehicle ownership, including insurance, taxes, and depreciation. This is calculated by factoring in the driver’s location and annual mileage to accurately reimburse for the business use of a personal vehicle.
Variable Rate: The variable portion is applied to each business mile driven, changing monthly with market costs. This covers the costs of vehicle operations, including elements such as fuel, vehicle maintenance, and tires.
TFCA: A Tax-Free Car Allowance, as outlined in IRS Publication 463, is an IRS-compliant reimbursement method that enables organizations to offer flexible, fixed reimbursement rates to their employee drivers without the compliance constraints associated with other programs. The only rule: the Tax Test. Employers compare their team’s reimbursements to the IRS standard rate equivalent (2025: $0.70). Only the surplus is taxable.
CPM: Cents per Mile Basic mileage reimbursement pays employees at a per-mile rate for their reported mileage. Often at the IRS standard rate, $0.70 per mile in 2025.
Data provided by Cardata over a sample of +500 surveyed companies and 120 selected companies leveraging Cardata’s vehicle reimbursement platform. Cardata is a vehicle reimbursement platform and end-to-end SaaS company for businesses with employees who drive personal vehicles for work. ■
