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Flexibility In Any Economy

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6 A GIFT FOR OIL AND GAS COMPANIES FAVR avoids the capital drain associated with fleet programs, freeing organizations from buying and maintaining company vehicles, and mitigating the risk of over or under reimbursing a mobile worker for fuel. A FAVR program generally costs a business about 14 to 26 percent less than a fleet program, which oen adds up to hundreds of thousands of dollars. Companies benefit from a lower tax burden because of the tax- free reimbursement, giving them the opportunity to do more with less – an especially helpful option during an economic downturn. Additionally, this flexible program can react to the economic environment, running leaner in downturns (for example, by reimbursing less for gas because prices are lower) and preventing other expense cutting. The main distinction is that a company does not own the asset. That means in a down economy the company is not on the hook for storage and maintenance costs for an entire fleet of vehicles – some of which may not even be in use when times are tough and head count is down. A FAVR program generally costs a business about less than a fleet program. 14 % to 26 %

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