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Flexibility In Any Economy

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3 THE BENEFITS OF FAVR Oil and gas companies can increase flexibility with a Fixed and Variable Rate (FAVR) Reimbursement for mobile workers' personal vehicles. FAVR vehicle programs offer some of the fairest, most accurate and defensible vehicle reimbursements. FAVR is widely considered a "best- of-breed" program that blends the fixed costs of owning a vehicle with location specific variable expenses (such as fuel) to produce highly accurate reimbursements. FAVR programs are the most targeted option for organizations, especially for oil and gas companies with employees dispersed across different regions driving 5,000 or more miles per year. A FAVR program can be implemented in any company, regardless of size, and they can be custom-built to suit an individual company. Companies start by choosing a standard base vehicle model(s) and setting insurance requirements that fit their organization's objectives. Mobile workers receive a monthly fixed reimbursement based on the ownership costs associated with the base vehicle specific to where they live. However, the mobile worker has the flexibility to drive any truck they'd like within the program parameters. Fixed rates are calculated to cover insurance, taxes, depreciation and registration. The variable reimbursement each month is based on the price of gas where they live and accounts for the changing costs of fuel, maintenance and tires. FAVR vehicle programs offer some of the fairest, most accurate and defensible vehicle reimbursements.

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