Fixed Payment
Quick definition
A fixed payment is the recurring part of a FAVR reimbursement that covers the business share of vehicle ownership costs.
Full definition
In a FAVR program, the fixed payment is a lump sum an employee receives for the business portion of vehicle ownership costs. It is paid on a recurring schedule and generally stays consistent between payment periods.
A simple example would be paying a driver $300 at the beginning of every month or every two weeks.
These costs include depreciation or lease payments, insurance, registration, and vehicle property taxes. The payment is based on the program’s standard vehicle and local costs.
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